Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Estée Lauder Cos. Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Estée Lauder Cos. Inc. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Estée Lauder Cos. Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Estée Lauder Cos. Inc. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Estée Lauder Cos. Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Estée Lauder Cos. Inc. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Estée Lauder Cos. Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Estée Lauder Cos. Inc. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Estée Lauder Cos. Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Estée Lauder Cos. Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
Estée Lauder Cos. Inc., debt to equity calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current debt | 997) | 268) | 32) | 1,222) | 516) | 183) | |
| Long-term debt, excluding current maturities | 7,117) | 5,144) | 5,537) | 4,914) | 2,896) | 3,361) | |
| Total debt | 8,114) | 5,412) | 5,569) | 6,136) | 3,412) | 3,544) | |
| Stockholders’ equity, The Estée Lauder Companies Inc. | 5,585) | 5,590) | 6,057) | 3,935) | 4,386) | 4,688) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 1.45 | 0.97 | 0.92 | 1.56 | 0.78 | 0.76 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Procter & Gamble Co. | 0.74 | 0.68 | 0.69 | 0.75 | 0.64 | 0.60 | |
| Debt to Equity, Industry | |||||||
| Consumer Staples | 1.30 | 1.22 | 1.21 | 1.37 | 1.28 | — | |
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).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= 8,114 ÷ 5,585 = 1.45
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Estée Lauder Cos. Inc. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Estée Lauder Cos. Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current debt | 997) | 268) | 32) | 1,222) | 516) | 183) | |
| Long-term debt, excluding current maturities | 7,117) | 5,144) | 5,537) | 4,914) | 2,896) | 3,361) | |
| Total debt | 8,114) | 5,412) | 5,569) | 6,136) | 3,412) | 3,544) | |
| Current operating lease liabilities | 357) | 365) | 379) | 375) | —) | —) | |
| Long-term operating lease liabilities | 1,698) | 1,868) | 2,151) | 2,278) | —) | —) | |
| Total debt (including operating lease liability) | 10,169) | 7,645) | 8,099) | 8,789) | 3,412) | 3,544) | |
| Stockholders’ equity, The Estée Lauder Companies Inc. | 5,585) | 5,590) | 6,057) | 3,935) | 4,386) | 4,688) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.82 | 1.37 | 1.34 | 2.23 | 0.78 | 0.76 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Procter & Gamble Co. | 0.76 | 0.69 | 0.71 | 0.77 | 0.64 | 0.60 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 1.42 | 1.34 | 1.33 | 1.51 | 1.31 | — | |
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).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= 10,169 ÷ 5,585 = 1.82
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Estée Lauder Cos. Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Estée Lauder Cos. Inc., debt to capital calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current debt | 997) | 268) | 32) | 1,222) | 516) | 183) | |
| Long-term debt, excluding current maturities | 7,117) | 5,144) | 5,537) | 4,914) | 2,896) | 3,361) | |
| Total debt | 8,114) | 5,412) | 5,569) | 6,136) | 3,412) | 3,544) | |
| Stockholders’ equity, The Estée Lauder Companies Inc. | 5,585) | 5,590) | 6,057) | 3,935) | 4,386) | 4,688) | |
| Total capital | 13,699) | 11,002) | 11,626) | 10,071) | 7,798) | 8,232) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.59 | 0.49 | 0.48 | 0.61 | 0.44 | 0.43 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Procter & Gamble Co. | 0.43 | 0.40 | 0.41 | 0.43 | 0.39 | 0.37 | |
| Debt to Capital, Industry | |||||||
| Consumer Staples | 0.57 | 0.55 | 0.55 | 0.58 | 0.56 | — | |
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).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 8,114 ÷ 13,699 = 0.59
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Estée Lauder Cos. Inc. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Estée Lauder Cos. Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current debt | 997) | 268) | 32) | 1,222) | 516) | 183) | |
| Long-term debt, excluding current maturities | 7,117) | 5,144) | 5,537) | 4,914) | 2,896) | 3,361) | |
| Total debt | 8,114) | 5,412) | 5,569) | 6,136) | 3,412) | 3,544) | |
| Current operating lease liabilities | 357) | 365) | 379) | 375) | —) | —) | |
| Long-term operating lease liabilities | 1,698) | 1,868) | 2,151) | 2,278) | —) | —) | |
| Total debt (including operating lease liability) | 10,169) | 7,645) | 8,099) | 8,789) | 3,412) | 3,544) | |
| Stockholders’ equity, The Estée Lauder Companies Inc. | 5,585) | 5,590) | 6,057) | 3,935) | 4,386) | 4,688) | |
| Total capital (including operating lease liability) | 15,754) | 13,235) | 14,156) | 12,724) | 7,798) | 8,232) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.65 | 0.58 | 0.57 | 0.69 | 0.44 | 0.43 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Procter & Gamble Co. | 0.43 | 0.41 | 0.41 | 0.43 | 0.39 | 0.37 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 0.59 | 0.57 | 0.57 | 0.60 | 0.57 | — | |
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).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 10,169 ÷ 15,754 = 0.65
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Estée Lauder Cos. Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Estée Lauder Cos. Inc., debt to assets calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current debt | 997) | 268) | 32) | 1,222) | 516) | 183) | |
| Long-term debt, excluding current maturities | 7,117) | 5,144) | 5,537) | 4,914) | 2,896) | 3,361) | |
| Total debt | 8,114) | 5,412) | 5,569) | 6,136) | 3,412) | 3,544) | |
| Total assets | 23,415) | 20,910) | 21,971) | 17,781) | 13,156) | 12,567) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.35 | 0.26 | 0.25 | 0.35 | 0.26 | 0.28 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Procter & Gamble Co. | 0.29 | 0.27 | 0.27 | 0.29 | 0.26 | 0.26 | |
| Debt to Assets, Industry | |||||||
| Consumer Staples | 0.33 | 0.32 | 0.32 | 0.35 | 0.35 | — | |
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).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 8,114 ÷ 23,415 = 0.35
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Estée Lauder Cos. Inc. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Estée Lauder Cos. Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current debt | 997) | 268) | 32) | 1,222) | 516) | 183) | |
| Long-term debt, excluding current maturities | 7,117) | 5,144) | 5,537) | 4,914) | 2,896) | 3,361) | |
| Total debt | 8,114) | 5,412) | 5,569) | 6,136) | 3,412) | 3,544) | |
| Current operating lease liabilities | 357) | 365) | 379) | 375) | —) | —) | |
| Long-term operating lease liabilities | 1,698) | 1,868) | 2,151) | 2,278) | —) | —) | |
| Total debt (including operating lease liability) | 10,169) | 7,645) | 8,099) | 8,789) | 3,412) | 3,544) | |
| Total assets | 23,415) | 20,910) | 21,971) | 17,781) | 13,156) | 12,567) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.43 | 0.37 | 0.37 | 0.49 | 0.26 | 0.28 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Procter & Gamble Co. | 0.29 | 0.28 | 0.28 | 0.30 | 0.26 | 0.26 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 0.36 | 0.35 | 0.35 | 0.38 | 0.36 | — | |
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).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 10,169 ÷ 23,415 = 0.43
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Estée Lauder Cos. Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Financial Leverage
Estée Lauder Cos. Inc., financial leverage calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 23,415) | 20,910) | 21,971) | 17,781) | 13,156) | 12,567) | |
| Stockholders’ equity, The Estée Lauder Companies Inc. | 5,585) | 5,590) | 6,057) | 3,935) | 4,386) | 4,688) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 4.19 | 3.74 | 3.63 | 4.52 | 3.00 | 2.68 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Procter & Gamble Co. | 2.58 | 2.52 | 2.57 | 2.59 | 2.44 | 2.26 | |
| Financial Leverage, Industry | |||||||
| Consumer Staples | 3.95 | 3.82 | 3.80 | 3.94 | 3.68 | — | |
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).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= 23,415 ÷ 5,585 = 4.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Estée Lauder Cos. Inc. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Estée Lauder Cos. Inc., interest coverage calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings attributable to The Estée Lauder Companies Inc. | 1,006) | 2,390) | 2,870) | 684) | 1,785) | 1,108) | |
| Add: Net income attributable to noncontrolling interest | 4) | 18) | 5) | 12) | 9) | 9) | |
| Add: Income tax expense | 387) | 628) | 456) | 350) | 513) | 863) | |
| Add: Interest expense | 255) | 167) | 173) | 161) | 133) | 128) | |
| Earnings before interest and tax (EBIT) | 1,652) | 3,203) | 3,504) | 1,207) | 2,440) | 2,108) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 6.48 | 19.18 | 20.25 | 7.50 | 18.35 | 16.47 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Procter & Gamble Co. | 25.28 | 41.99 | 36.09 | 35.05 | 12.92 | 27.34 | |
| Interest Coverage, Industry | |||||||
| Consumer Staples | 11.26 | 14.44 | 10.59 | 10.92 | 8.45 | — | |
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).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,652 ÷ 255 = 6.48
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Estée Lauder Cos. Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Estée Lauder Cos. Inc., fixed charge coverage calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings attributable to The Estée Lauder Companies Inc. | 1,006) | 2,390) | 2,870) | 684) | 1,785) | 1,108) | |
| Add: Net income attributable to noncontrolling interest | 4) | 18) | 5) | 12) | 9) | 9) | |
| Add: Income tax expense | 387) | 628) | 456) | 350) | 513) | 863) | |
| Add: Interest expense | 255) | 167) | 173) | 161) | 133) | 128) | |
| Earnings before interest and tax (EBIT) | 1,652) | 3,203) | 3,504) | 1,207) | 2,440) | 2,108) | |
| Add: Operating lease cost | 444) | 465) | 470) | 625) | 583) | 489) | |
| Earnings before fixed charges and tax | 2,096) | 3,668) | 3,974) | 1,832) | 3,023) | 2,597) | |
| Interest expense | 255) | 167) | 173) | 161) | 133) | 128) | |
| Operating lease cost | 444) | 465) | 470) | 625) | 583) | 489) | |
| Fixed charges | 699) | 632) | 643) | 786) | 716) | 617) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 3.00 | 5.80 | 6.18 | 2.33 | 4.22 | 4.21 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Procter & Gamble Co. | 13.66 | 16.98 | 15.83 | 14.54 | 5.85 | 11.67 | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Staples | 7.62 | 8.92 | 7.21 | 7.15 | 5.41 | — | |
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).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,096 ÷ 699 = 3.00
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Estée Lauder Cos. Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |