Estee Lauder Companies Inc (EL)

The analysis of Estee Lauder Companies Inc.'s Days of Sales Outstanding (DSO) over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations that reflect changes in the company's accounts receivable collection efficiency.

As of June 30, 2021, the DSO was approximately 38.31 days, indicating that, on average, the company took around 38 days to collect payments from its customers. In the subsequent year, there was a decrease to approximately 33.52 days by June 30, 2022, suggesting an improvement in receivables management and faster collection.

This trend persisted into June 30, 2023, with a marginal further decline to roughly 33.31 days, maintaining the company's heightened efficiency in receivables turnover during this period. However, a notable shift occurred by June 30, 2024, when the DSO increased to approximately 40.39 days, signaling a deterioration in collection performance and longer receivables periods. This upward movement indicates that the company started experiencing delays in collecting receivables.

The trend showed some stabilization into June 30, 2025, with the DSO slightly decreasing to about 38.98 days, still elevated compared to the 2022 and 2023 figures but indicating a partial reversal of the previous deterioration.

Overall, the historical DSO data demonstrates a pattern of initial improvement followed by a period of increased collection duration, with a modest recovery towards the end of the analysis period. These fluctuations could be influenced by various factors, including changes in credit policies, customer payment behaviors, economic conditions, or shifts in product sales channels. Monitoring future DSO trends will be essential for assessing the company's receivables management efficiency and liquidity position.

Peer comparison

Jun 30, 2025