Estee Lauder Companies Inc (EL)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,298,000 | 15,699,000 | 17,552,000 | 16,007,000 | 14,164,000 |
| Property, plant and equipment | US$ in thousands | 3,136,000 | 3,179,000 | 2,650,000 | 2,280,000 | 2,055,000 |
| Fixed asset turnover | 4.88 | 4.94 | 6.62 | 7.02 | 6.89 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,298,000K ÷ $3,136,000K
= 4.88
Estee Lauder Companies Inc's fixed asset turnover has shown a declining trend over the past five years, decreasing from 7.02 in 2021 to 4.88 in 2024. This indicates that the company generated $4.88 in revenue for every dollar invested in fixed assets in 2024, down from $7.02 in 2021. The decreasing fixed asset turnover may suggest inefficiencies in asset utilization or a slowing down of revenue growth relative to its investment in fixed assets. Further investigation into the company's efficiency in managing its fixed assets and strategies for improving asset turnover may be warranted.
Peer comparison
Jun 30, 2024