Estee Lauder Companies Inc (EL)

Fixed asset turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	14,326,000	15,608,000	15,910,000	17,737,000	16,215,000
Property, plant and equipment	US$ in thousands	—	4,969,000	3,179,000	4,599,000	4,470,000
Fixed asset turnover		—	3.14	5.00	3.86	3.63

June 30, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,326,000K ÷ $—K
= —

The fixed asset turnover ratio of Estee Lauder Companies Inc measures the efficiency with which the company utilizes its fixed assets to generate sales revenue. An analysis of the provided data reveals the following trends over the specified periods:

From June 30, 2021, to June 30, 2023, there is a notable upward trajectory in the ratio, increasing from 3.63 to 5.00. This indicates that during this period, the company became more effective in generating sales per dollar of fixed assets, reflecting potentially improved asset utilization, strategic investments, or operational efficiencies.

Specifically, between June 30, 2021, and June 30, 2022, the ratio increased modestly from 3.63 to 3.86, suggesting a positive development in asset productivity. The upward momentum continues into June 30, 2023, with the ratio reaching its peak at 5.00, indicating a significant enhancement in asset utilization efficiency over this two-year span.

However, in the subsequent period ending June 30, 2024, the ratio declines markedly to 3.14. This decrease signifies a reduction in the efficiency of fixed asset utilization to generate sales, which could be attributed to various factors such as increased investments in fixed assets not yet fully realized in sales, operational challenges, or shifts in the company's strategic focus. The sharp drop warrants further investigation into operational or market conditions during this period.

For the period ending June 30, 2025, the data is unavailable or not disclosed, precluding analysis of that timeframe.

Overall, the fixed asset turnover ratio demonstrates a trend of improvement leading up to mid-2023, followed by a notable decline in 2024. These fluctuations underscore the importance of contextual factors such as investments, sales strategies, and operational efficiencies in interpreting the company's asset utilization performance over time.