Estee Lauder Companies Inc (EL)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	3,729,000	3,867,000	4,085,000	4,282,000	4,424,000	4,494,000	4,546,000	4,611,000	4,564,000	4,432,000	4,267,000	4,271,000	4,305,000	4,260,000	4,205,000	4,066,000	3,834,000	3,615,000	3,512,000	3,469,000
Inventory	US$ in thousands	2,074,000	1,959,000	2,002,000	2,255,000	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
Inventory turnover		1.80	1.97	2.04	1.90	2.03	1.95	1.75	1.61	1.53	1.43	1.39	1.42	1.47	1.51	1.61	1.54	1.53	1.69	1.66	1.57

June 30, 2025 calculation

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

The inventory turnover of Estee Lauder Companies Inc. exhibited fluctuations over the analyzed period from September 2020 to June 2025. Initially, the ratio was approximately 1.57 as of September 2020, then increased to 1.66 by the end of 2020, indicating a slight improvement in inventory management and sales efficiency during that interval. Throughout 2021, the ratios generally maintained a stable trend, with values ranging from 1.51 to 1.69, reflecting consistent inventory utilization.

A decline was observed starting in 2022, with the ratio decreasing to as low as 1.39 by December 2022, signaling slower inventory turnover or potential excess stock levels. This trend continued into early 2023, with ratios around 1.43 to 1.53, before commencing a recovery phase in late 2023 and into 2024. Notably, the ratio reached a peak of 2.03 in June 2024, suggesting a significant enhancement in inventory efficiency.

Subsequent quarters showed a slight decline but maintained higher levels relative to previous years, with the ratio reaching 1.97 by March 2025. The latest data point available in June 2025 indicates a ratio of 1.80, implying that inventory turnover remains robust, though somewhat below the 2024 peak.

Overall, the inventory turnover ratio demonstrated periods of decline followed by recovery, with an upward trend emerging in the most recent quarters. This pattern suggests improved inventory management and sales effectiveness in recent periods, aligning with strategic efforts to optimize stock levels and enhance operational efficiency.