Estee Lauder Companies Inc (EL)
Receivables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,298,000 | 15,699,000 | 17,552,000 | 16,007,000 | 14,164,000 |
| Receivables | US$ in thousands | 1,727,000 | 1,452,000 | 1,629,000 | 1,702,000 | 1,194,000 |
| Receivables turnover | 8.86 | 10.81 | 10.77 | 9.40 | 11.86 |
June 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $15,298,000K ÷ $1,727,000K
= 8.86
Estee Lauder Companies Inc's receivables turnover has fluctuated over the past five years. The ratio decreased from 11.86 in 2020 to 8.86 in 2024, indicating a decrease in how efficiently the company is collecting its accounts receivable. Generally, a higher receivables turnover ratio is preferred as it signifies that the company is collecting its outstanding credit sales more quickly.
The decline in receivables turnover could indicate potential issues with the company's credit policies, collection processes, or customer creditworthiness. Further analysis is required to determine the underlying factors contributing to this decrease and to assess the company's overall effectiveness in managing its accounts receivable.
Peer comparison
Jun 30, 2024