Estee Lauder Companies Inc (EL)

Payables 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
Payables	US$ in thousands	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	1,177,000	1,162,000	1,137,000	1,071,000
Payables turnover		10.72	12.50	11.98	12.20	9.08	9.85	9.82	10.67	8.26	10.47	9.33	10.05	8.45	8.31	8.12	9.24	9.45	12.36	12.53	12.47

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $15,444,000K ÷ $1,440,000K
= 10.72

Estee Lauder Companies Inc's payables turnover ratio measures the efficiency of the company in managing its accounts payable by indicating how many times its payables are paid off within a specific period.

Analyzing the trend of the payables turnover ratio over the past several quarters, we observe fluctuations in the ratio. The payables turnover ratio increased in the most recent quarter to 10.72 compared to the previous quarter's 12.50. This indicates that the company took longer to pay off its accounts payable in the current quarter.

Overall, the payables turnover ratio for Estee Lauder Companies Inc has been relatively stable, ranging from a low of 8.12 to a high of 12.50 over the past few quarters. This suggests that the company has been managing its accounts payable effectively.

A higher payables turnover ratio generally signifies that the company is efficiently managing its payables by paying them off quickly. On the other hand, a lower ratio could indicate that the company is taking longer to pay its suppliers, which could potentially strain relationships or signal cash flow issues.

It is important to note that the payables turnover ratio should be analyzed in conjunction with other financial ratios and factors to gain a more comprehensive understanding of Estee Lauder Companies Inc's financial performance and liquidity management.