Estee Lauder Companies Inc (EL)

Fixed asset turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	15,304,000	15,004,000	14,853,000	15,247,000	15,705,000	15,722,000	16,211,000	17,114,000	17,557,000	17,920,000	17,531,000	16,850,000	16,025,000	14,572,000	14,072,000	14,451,000	14,801,000	15,961,000	16,428,000	15,202,000
Property, plant and equipment	US$ in thousands	3,136,000	3,133,000	3,220,000	3,103,000	3,179,000	3,026,000	2,908,000	2,654,000	2,650,000	2,493,000	2,451,000	2,358,000	2,280,000	2,106,000	2,142,000	2,077,000	2,055,000	2,092,000	2,086,000	2,018,000
Fixed asset turnover		4.88	4.79	4.61	4.91	4.94	5.20	5.57	6.45	6.63	7.19	7.15	7.15	7.03	6.92	6.57	6.96	7.20	7.63	7.88	7.53

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,304,000K ÷ $3,136,000K
= 4.88

Estee Lauder Companies Inc's fixed asset turnover has shown fluctuations over the past few quarters, with values ranging from 4.61 to 7.88. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar of fixed assets.

The trend in Estee Lauder's fixed asset turnover has been generally positive, with the ratio increasing from 4.61 in December 2023 to 7.88 in December 2019. This suggests that the company has been improving its efficiency in utilizing its fixed assets to generate sales over time.

The most recent fixed asset turnover ratio of 4.88 indicates that for every dollar of fixed assets, Estee Lauder generated $4.88 in revenue. While this is a strong ratio, investors and analysts may want to monitor future quarters to see if the company can sustain or improve this level of efficiency in utilizing its fixed assets.