Estee Lauder Companies Inc (EL)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,444,000 | 15,157,000 | 15,260,000 | 14,358,000 | 14,516,000 |
| Inventory | US$ in thousands | 2,175,000 | 2,979,000 | 2,920,000 | 2,505,000 | 2,062,000 |
| Inventory turnover | 7.10 | 5.09 | 5.23 | 5.73 | 7.04 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $15,444,000K ÷ $2,175,000K
= 7.10
The inventory turnover ratio for Estee Lauder Companies Inc has exhibited fluctuations over the past five years. It increased from 5.73 in 2021 to 7.10 in 2024, showing an improvement in the company's efficiency in managing its inventory. A higher inventory turnover ratio indicates that the company is selling its goods more frequently within a given period.
However, it is important to note that the inventory turnover ratio decreased in 2023 compared to the previous year, suggesting that the company may have experienced challenges in managing its inventory efficiently during that period. Despite this dip, the ratio rebounded in the following years, exceeding the levels seen in 2022 and 2021.
Overall, the upward trend in inventory turnover from 2020 to 2024 signifies that Estee Lauder Companies Inc has been effectively managing its inventory levels and turning its inventory into sales at a faster pace in recent years. This trend is generally positive and indicates improved operational efficiency in the company's inventory management processes.
Peer comparison
Jun 30, 2024