Estee Lauder Companies Inc (EL)

Fixed asset turnover

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Revenue (ttm)	US$ in thousands	14,326,000	14,786,000	15,176,000	15,451,000	15,608,000	15,346,000	15,157,000	15,498,000	15,910,000	15,862,000	16,356,000	17,275,000	17,737,000	18,112,000	17,731,000	17,045,000	16,215,000	14,709,000	14,190,000	13,961,000
Property, plant and equipment	US$ in thousands	—	4,934,000	4,940,000	5,206,000	—	—	—	4,890,000	3,179,000	3,026,000	2,908,000	2,654,000	4,599,000	2,493,000	4,553,000	4,471,000	4,470,000	4,318,000	2,142,000	2,077,000
Fixed asset turnover		—	3.00	3.07	2.97	—	—	—	3.17	5.00	5.24	5.62	6.51	3.86	7.27	3.89	3.81	3.63	3.41	6.62	6.72

June 30, 2025 calculation

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

The fixed asset turnover ratio of Estee Lauder Companies Inc. exhibits notable fluctuations over the analyzed period, reflecting variations in asset utilization efficiency in generating revenue.

From September 2020 to December 2021, the ratio experienced a declining trend, beginning at 6.72 and decreasing to 3.89. This decline may suggest a period where the company's fixed assets were less effectively employed in generating sales, potentially due to strategic shifts, inventory buildup, or operational adjustments amid the pandemic.

A significant rebound is observed in March 2022, where the ratio surges to 7.27, indicating a substantial improvement in efficiency, possibly owing to operational reforms, asset reallocation, or recovery from pandemic-related disruptions. However, subsequent quarters show a decline again, with ratios falling to 3.86 in June 2022 and further down to approximately 3.17 by September 2023. This downward trend could imply increased capital investment or a period where fixed assets' productivity in generating revenue was less efficient.

The ratio's trajectory continues to reflect volatility, with measurements in late 2023 and early 2024 (2.97 and 3.07 respectively) remaining relatively low compared to earlier peaks, suggesting ongoing challenges or strategic restructuring affecting the utilization of fixed assets.

Overall, the pattern indicates periods of both utilization efficiency and relative underperformance, with the ratio's peak in March 2022 highlighting a phase of optimal asset productivity. The subsequent decline underscores potential asset expansion, reinvestment, or operational shifts impacting efficiency. Continued monitoring could provide further insights into the company's asset management strategies and operational performance trends.