Estee Lauder Companies Inc (EL)

Inventory turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	3,729,000	4,424,000	4,564,000	4,305,000	3,834,000
Inventory	US$ in thousands	2,074,000	2,175,000	2,979,000	2,920,000	2,505,000
Inventory turnover		1.80	2.03	1.53	1.47	1.53

June 30, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,729,000K ÷ $2,074,000K
= 1.80

The inventory turnover ratio for Estee Lauder Companies Inc. has exhibited fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio was 1.53 in 2021, decreased slightly to 1.47 in 2022, and then returned to the same level of 1.53 in 2023. A notable increase occurred in 2024, where the ratio rose to 2.03, indicating a more efficient management of inventory during this period. However, in 2025, the ratio declined somewhat to 1.80, though it remained higher than the levels observed in 2021 through 2023.

This pattern suggests periods of varying inventory efficiency, with the most significant improvement observed in 2024. The increase to 2.03 in 2024 implies that the company was able to sell and replenish inventory more rapidly compared to previous years, potentially reflecting enhanced inventory management, increased sales, or shifts in product turnover rates. Conversely, the decline in 2025 indicates a slight reduction in this efficiency, yet the ratio still remains above the pre-2024 levels.

Overall, the trend highlights a period of inventory management improvement culminating in 2024, followed by a partial reversion in 2025. The fluctuations could be attributable to changes in sales volume, promotional activities, product mix, or supply chain efficiencies. Continuous monitoring of this ratio is essential for assessing the company's operational performance and inventory control strategies over time.