Estee Lauder Companies Inc (EL)

Number of days of payables

		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
Payables turnover		2.49	3.19	3.61	3.77	3.07	3.75	3.63	3.67	2.73	2.92	2.83	3.07	2.36	2.90	2.57	2.74	2.27	2.83	2.70	2.94
Number of days of payables	days	146.53	114.59	101.24	96.75	118.81	97.22	100.52	99.50	133.56	125.18	128.91	118.96	154.48	125.95	142.27	133.31	161.08	128.94	135.00	123.95

June 30, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 2.49
= 146.53

The analysis of Estee Lauder Companies Inc.'s days payable outstanding (DPO) over the specified periods reveals fluctuations indicative of changes in the company's payment practices and working capital management. At the outset, as of September 30, 2020, the company maintained a DPO of approximately 124 days, increasing to 135 days by December 31, 2020, and slightly declining to around 129 days by March 31, 2021. This early period demonstrates a tendency toward longer payment durations, likely reflecting strategic management of supplier payments or shifting credit terms.

During the subsequent period ending June 30, 2021, the DPO peaked at approximately 161 days, signifying a significant extension in the time taken to pay suppliers. This lengthening may suggest deliberate efforts to conserve cash or negotiate more favorable credit terms with suppliers. However, a moderate reduction occurred by September 30, 2021, to roughly 133 days, followed by a gradual decrease to about 142 days at year-end 2021.

In 2022, the company’s DPO generally declined, reaching approximately 126 days at March 31 and rising slightly toward mid-year to 154 days but then decreasing again to 119 days by September 30. The decline continued into 2023, with DPOs around 125 days at the end of March and approximately 134 days mid-year, narrowing further to nearly 99.5 days as of September 30, 2023. This notable reduction indicates a shortening of the payment cycle, possibly reflecting improved liquidity management or more prompt settlement of liabilities.

In late 2023 and early 2024, the DPO stabilized around 100 days, with slight increases observed in subsequent periods, reaching approximately 115 days by March 31, 2025. The data suggests an overall downward trend in days payable outstanding from the peak levels observed in 2021, with subsequent periods demonstrating a more conservative approach to extending payment terms.

Overall, the company's days payables exhibit variability over the observed timeframe, with notable peaks in mid-2021 followed by a gradual contraction in the payable period into late 2023 and early 2024. Such patterns may reflect strategic adjustments in supplier negotiations, liquidity positions, or operational policies, impacting the company's working capital cycle and cash flow management.