Estee Lauder Companies Inc (EL)

Payables 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
Payables	US$ in thousands	1,497,000	1,214,000	1,133,000	1,135,000	1,440,000	1,197,000	1,252,000	1,257,000	1,670,000	1,520,000	1,507,000	1,392,000	1,822,000	1,470,000	1,639,000	1,485,000	1,692,000	1,277,000	1,299,000	1,178,000
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

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,729,000K ÷ $1,497,000K
= 2.49

The payables turnover ratio for Estee Lauder Companies Inc exhibits notable fluctuations over the specified periods. Starting at 2.94 times as of September 30, 2020, the ratio declined to a low of 2.27 by June 30, 2021, indicating a period of slower payment to suppliers or increased accounts payable levels relative to purchases. Subsequently, the ratio recovered to 2.74 in September 2021 and remained in a slightly decreasing trend toward December 2021 at 2.57.

From late 2021 through until the second quarter of 2022, the ratio experienced upward movement, reaching 2.90 in March 2022, suggesting a relative acceleration in settling payables. This trajectory continued into 2022, with the ratio peaking at 3.07 on September 30, 2022, indicative of faster payments or possibly improved liquidity management.

Between late 2022 and mid-2023, a slight decrease is observed, with the ratio declining to 2.83 in December 2022 and further to 2.92 in March 2023, but remaining generally stable within the range of approximately 2.73 to 3.07. This stability suggests a consistent approach to settling trade payables during this period.

Notably, the ratio increased considerably in late 2023 and into early 2024, reaching a high of 3.77 on September 30, 2024, and maintaining a similar level at December 2024 with 3.61. This increase may imply more prompt payments to suppliers, possibly driven by improved cash flows or strategic supplier relations. Conversely, the ratio declined thereafter, reaching 3.19 by March 2025, with a further decrease to 2.49 in June 2025, indicating a shift toward slower payables turnover or increased leverage in accounts payable management.

Overall, the trend in Estee Lauder’s payables turnover reflects periods of both acceleration and deceleration in payable settlements, with a significant peak around September 2024. The ratio's fluctuations underscore changes in payment strategies, liquidity position, and possibly supplier negotiations over time.