Return on Assets (ROA)
since 2005
Calculation
Estée Lauder Cos. Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings attributable to The Estée Lauder Companies Inc.1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2023 | 4.30% | = | 100 | × | 1,006) | ÷ | 23,415) |
| Jun 30, 2022 | 11.43% | = | 100 | × | 2,390) | ÷ | 20,910) |
| Jun 30, 2021 | 13.06% | = | 100 | × | 2,870) | ÷ | 21,971) |
| Jun 30, 2020 | 3.85% | = | 100 | × | 684) | ÷ | 17,781) |
| Jun 30, 2019 | 13.57% | = | 100 | × | 1,785) | ÷ | 13,156) |
| Jun 30, 2018 | 8.82% | = | 100 | × | 1,108) | ÷ | 12,567) |
| Jun 30, 2017 | 10.80% | = | 100 | × | 1,249) | ÷ | 11,568) |
| Jun 30, 2016 | 12.08% | = | 100 | × | 1,115) | ÷ | 9,223) |
| Jun 30, 2015 | 13.22% | = | 100 | × | 1,089) | ÷ | 8,239) |
| Jun 30, 2014 | 15.30% | = | 100 | × | 1,204) | ÷ | 7,869) |
| Jun 30, 2013 | 14.27% | = | 100 | × | 1,020) | ÷ | 7,145) |
| Jun 30, 2012 | 13.00% | = | 100 | × | 857) | ÷ | 6,593) |
| Jun 30, 2011 | 11.17% | = | 100 | × | 701) | ÷ | 6,274) |
| Jun 30, 2010 | 8.96% | = | 100 | × | 478) | ÷ | 5,336) |
| Jun 30, 2009 | 4.22% | = | 100 | × | 218) | ÷ | 5,177) |
| Jun 30, 2008 | 9.45% | = | 100 | × | 474) | ÷ | 5,011) |
| Jun 30, 2007 | 10.89% | = | 100 | × | 449) | ÷ | 4,126) |
| Jun 30, 2006 | 6.45% | = | 100 | × | 244) | ÷ | 3,784) |
| Jun 30, 2005 | 10.45% | = | 100 | × | 406) | ÷ | 3,886) |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$ in millions
The financial performance from 2005 to 2023 is characterized by substantial growth in the asset base accompanied by fluctuating profitability efficiency. While total assets expanded significantly over the period, the Return on Assets (ROA) exhibited cyclical patterns, reflecting varying levels of operational efficiency in utilizing these assets to generate net earnings.
- Return on Assets (ROA) Trends
- The ROA experienced several distinct phases. Between 2005 and 2009, the ratio was volatile, reaching a period low of 4.22% in 2009. A sustained period of improvement followed, with ROA climbing steadily to a peak of 15.30% in 2014. This was followed by a gradual decline until 2018, when it reached 8.82%. A sharp contraction occurred in 2020, with ROA dropping to 3.85%, the lowest point in the observed timeframe, before rebounding to 13.06% in 2021. The period concluded with a significant decrease to 4.30% by June 30, 2023.
- Asset Base Expansion
- The total asset base demonstrated consistent long-term growth, increasing from 3,886 million USD in 2005 to 23,415 million USD in 2023. This represents a more than six-fold increase in the scale of the resource base. Notable acceleration in asset accumulation is observed between 2019 and 2021, where total assets rose from 13,156 million USD to a peak of 21,971 million USD.
- Net Earnings Performance
- Net earnings displayed an overall upward trajectory despite periodic volatility. Earnings grew from 406 million USD in 2005 to a peak of 2,870 million USD in 2021. However, earnings did not scale linearly with asset growth. This discrepancy is most evident in 2023, where net earnings fell to 1,006 million USD despite assets remaining at near-peak levels, resulting in a significant compression of the ROA.
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Comparison to Competitors
Estée Lauder Cos. Inc., ROA, long-term trends, comparison to competitors
| Estée Lauder Cos. Inc. | Procter & Gamble Co. | |
|---|---|---|
| Jun 30, 2023 | 4.30% | 12.13% |
| Jun 30, 2022 | 11.43% | 12.58% |
| Jun 30, 2021 | 13.06% | 11.99% |
| Jun 30, 2020 | 3.85% | 10.79% |
| Jun 30, 2019 | 13.57% | 3.39% |
| Jun 30, 2018 | 8.82% | 8.24% |
| Jun 30, 2017 | 10.80% | 12.73% |
| Jun 30, 2016 | 12.08% | 8.27% |
| Jun 30, 2015 | 13.22% | 5.43% |
| Jun 30, 2014 | 15.30% | 8.07% |
| Jun 30, 2013 | 14.27% | 8.12% |
| Jun 30, 2012 | 13.00% | 8.13% |
| Jun 30, 2011 | 11.17% | 8.53% |
| Jun 30, 2010 | 8.96% | 9.94% |
| Jun 30, 2009 | 4.22% | 9.96% |
| Jun 30, 2008 | 9.45% | 8.39% |
| Jun 30, 2007 | 10.89% | 7.49% |
| Jun 30, 2006 | 6.45% | 6.40% |
| Jun 30, 2005 | 10.45% | 11.79% |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Industry (Consumer Staples)
Estée Lauder Cos. Inc., ROA, long-term trends, comparison to industry (consumer staples)
| Estée Lauder Cos. Inc. | Consumer Staples | |
|---|---|---|
| Jun 30, 2023 | 4.30% | 8.28% |
| Jun 30, 2022 | 11.43% | 8.95% |
| Jun 30, 2021 | 13.06% | 8.75% |
| Jun 30, 2020 | 3.85% | 8.24% |
| Jun 30, 2019 | 13.57% | 6.41% |
| Jun 30, 2018 | 8.82% | 8.40% |
| Jun 30, 2017 | 10.80% | 7.42% |
| Jun 30, 2016 | 12.08% | 7.94% |
| Jun 30, 2015 | 13.22% | 7.69% |
| Jun 30, 2014 | 15.30% | 7.96% |
| Jun 30, 2013 | 14.27% | 8.75% |
| Jun 30, 2012 | 13.00% | 8.63% |
| Jun 30, 2011 | 11.17% | 8.89% |
| Jun 30, 2010 | 8.96% | 9.45% |
| Jun 30, 2009 | 4.22% | 9.43% |
| Jun 30, 2008 | 9.45% | 9.11% |
| Jun 30, 2007 | 10.89% | 8.07% |
| Jun 30, 2006 | 6.45% | 8.42% |
| Jun 30, 2005 | 10.45% | 9.55% |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).