Estee Lauder Companies Inc (EL)
Receivables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,326,000 | 15,608,000 | 15,910,000 | 17,737,000 | 16,215,000 |
| Receivables | US$ in thousands | 1,530,000 | 1,727,000 | 1,452,000 | 1,629,000 | 1,702,000 |
| Receivables turnover | 9.36 | 9.04 | 10.96 | 10.89 | 9.53 |
June 30, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,326,000K ÷ $1,530,000K
= 9.36
The receivables turnover ratio for Estee Lauder Companies Inc. demonstrates a pattern of significant fluctuations over the analyzed period. As of June 30, 2021, the ratio was 9.53, indicating approximately 9.5 times that the company collected its average accounts receivable during the year. This ratio increased notably in the subsequent year to 10.89 by June 30, 2022, representing an improvement in the company's efficiency in collecting receivables. The upward trend persisted into June 30, 2023, with a slight increase to 10.96, signaling continued efficiency gains.
However, a decline is observed in June 30, 2024, when the ratio dropped to 9.04, suggesting the company collected its receivables less frequently during this period compared to the previous years. This decline may indicate a potential loosening of credit policies, extended payment terms, or challenges in receivable collections. The ratio modestly increased again to 9.36 by June 30, 2025, reflecting a partial recovery in collection efficiency, though levels remained below the peak observed in 2023.
Overall, the receivables turnover indicates that the company's collection efficiency experienced an upward trajectory from 2021 to 2023, followed by a decline in 2024, and a slight improvement in 2025. The fluctuations suggest periods of changing credit management practices or operational dynamics affecting receivables. Maintaining or improving collection efficiency is important for managing working capital effectively and minimizing credit risk, and the observed variations underscore the importance of ongoing credit policy management for Estee Lauder.
Peer comparison
Jun 30, 2025