Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Estée Lauder Cos. Inc., long-term (investment) activity 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Estée Lauder Cos. Inc. net fixed asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Estée Lauder Cos. Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Estée Lauder Cos. Inc. total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Estée Lauder Cos. Inc. equity turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Net Fixed Asset Turnover
Estée Lauder Cos. Inc., net fixed asset turnover 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 sales | 15,910) | 17,737) | 16,215) | 14,294) | 14,863) | 13,683) | |
| Property, plant and equipment, net | 3,179) | 2,650) | 2,280) | 2,055) | 2,068) | 1,823) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 5.00 | 6.69 | 7.11 | 6.96 | 7.19 | 7.51 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Procter & Gamble Co. | 3.74 | 3.78 | 3.51 | 3.43 | 3.18 | — | |
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Staples | 5.16 | 5.21 | 5.06 | 4.37 | — | — | |
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
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 15,910 ÷ 3,179 = 5.00
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Estée Lauder Cos. Inc. net fixed asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Estée Lauder Cos. Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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 sales | 15,910) | 17,737) | 16,215) | 14,294) | 14,863) | 13,683) | |
| Property, plant and equipment, net | 3,179) | 2,650) | 2,280) | 2,055) | 2,068) | 1,823) | |
| Operating lease right-of-use assets | 1,797) | 1,949) | 2,190) | 2,282) | —) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 4,976) | 4,599) | 4,470) | 4,337) | 2,068) | 1,823) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.20 | 3.86 | 3.63 | 3.30 | 7.19 | 7.51 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Procter & Gamble Co. | 3.61 | 3.65 | 3.38 | 3.29 | 3.18 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Staples | 4.67 | 4.69 | 4.55 | 3.89 | — | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 15,910 ÷ 4,976 = 3.20
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Estée Lauder Cos. Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Total Asset Turnover
Estée Lauder Cos. Inc., total asset turnover 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 sales | 15,910) | 17,737) | 16,215) | 14,294) | 14,863) | 13,683) | |
| Total assets | 23,415) | 20,910) | 21,971) | 17,781) | 13,156) | 12,567) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 0.68 | 0.85 | 0.74 | 0.80 | 1.13 | 1.09 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Procter & Gamble Co. | 0.68 | 0.68 | 0.64 | 0.59 | 0.59 | — | |
| Total Asset Turnover, Industry | |||||||
| Consumer Staples | 1.51 | 1.46 | 1.41 | 1.32 | — | — | |
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
Total asset turnover = Net sales ÷ Total assets
= 15,910 ÷ 23,415 = 0.68
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Estée Lauder Cos. Inc. total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Equity Turnover
Estée Lauder Cos. Inc., equity turnover 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 sales | 15,910) | 17,737) | 16,215) | 14,294) | 14,863) | 13,683) | |
| Stockholders’ equity, The Estée Lauder Companies Inc. | 5,585) | 5,590) | 6,057) | 3,935) | 4,386) | 4,688) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 2.85 | 3.17 | 2.68 | 3.63 | 3.39 | 2.92 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Procter & Gamble Co. | 1.75 | 1.72 | 1.64 | 1.53 | 1.43 | — | |
| Equity Turnover, Industry | |||||||
| Consumer Staples | 5.61 | 5.25 | 5.05 | 4.97 | — | — | |
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
Equity turnover = Net sales ÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= 15,910 ÷ 5,585 = 2.85
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Estée Lauder Cos. Inc. equity turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |