Estee Lauder Companies Inc (EL)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	15,444,000	14,967,000	14,997,000	15,331,000	15,157,000	14,970,000	14,799,000	14,857,000	15,044,000	15,387,000	15,300,000	14,920,000	14,298,000	10,614,000	10,554,000	10,880,000	11,127,000	14,363,000	14,246,000	13,357,000
Inventory	US$ in thousands	2,175,000	2,307,000	2,603,000	2,863,000	2,979,000	3,097,000	3,069,000	3,018,000	2,920,000	2,830,000	2,612,000	2,633,000	2,505,000	2,134,000	2,116,000	2,204,000	2,062,000	2,087,000	2,058,000	2,055,000
Inventory turnover		7.10	6.49	5.76	5.35	5.09	4.83	4.82	4.92	5.15	5.44	5.86	5.67	5.71	4.97	4.99	4.94	5.40	6.88	6.92	6.50

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,444,000K ÷ $2,175,000K
= 7.10

Estee Lauder Companies Inc's inventory turnover has shown variability over the past several quarters. The inventory turnover ratio measures how many times a company's inventory is sold and replaced within a specific period. A higher turnover indicates efficient inventory management and faster sales.

In the most recent quarter ending June 30, 2024, the inventory turnover ratio was 7.10, showing an improvement from the previous quarter. This suggests that Estee Lauder was selling and replenishing its inventory at a faster rate, which could result in reduced holding costs and increased cash flow.

Looking at historical data, there has been a general upward trend in inventory turnover over the past few quarters, with some fluctuations. This indicates that Estee Lauder has been effectively managing its inventory levels and optimizing sales.

Overall, the increasing trend in inventory turnover ratios for Estee Lauder Companies Inc reflects a positive sign of efficient inventory management, which can lead to improved profitability and financial performance.