Estee Lauder Companies Inc (EL)
Payables 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 |
| Payables | US$ in thousands | 1,440,000 | 1,670,000 | 1,822,000 | 1,692,000 | 1,177,000 |
| Payables turnover | 10.72 | 9.08 | 8.38 | 8.49 | 12.33 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $15,444,000K ÷ $1,440,000K
= 10.72
The payables turnover ratio for Estee Lauder Companies Inc has shown variability over the past five years. The ratio was 10.72 in 2024, indicating that the company converted its accounts payable into purchases 10.72 times during the year. This represents an improvement from the previous year's ratio of 9.08 in 2023.
In 2022, the payables turnover ratio was 8.38, which was slightly lower than the ratio in 2021 (8.49). The lowest ratio in recent years was observed in 2020 at 12.33, suggesting that the company took longer to pay off its suppliers that year compared to the subsequent years.
Overall, the increasing trend in the payables turnover ratio from 2020 to 2024 may indicate that Estee Lauder Companies Inc has been managing its accounts payable more effectively, possibly negotiating better credit terms with suppliers or focusing on efficient cash flow management. However, further analysis and comparison with industry benchmarks would provide deeper insights into the company's payables management efficiency.
Peer comparison
Jun 30, 2024