Estee Lauder Companies Inc (EL)

Receivables 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
Revenue (ttm)	US$ in thousands	15,304,000	15,004,000	14,853,000	15,247,000	15,705,000	15,722,000	16,211,000	17,114,000	17,557,000	17,920,000	17,531,000	16,850,000	16,025,000	14,572,000	14,072,000	14,451,000	14,801,000	15,961,000	16,428,000	15,202,000
Receivables	US$ in thousands	1,727,000	1,854,000	1,752,000	1,909,000	1,452,000	1,904,000	1,932,000	2,156,000	1,629,000	2,209,000	2,079,000	2,265,000	1,702,000	1,735,000	1,972,000	1,812,000	1,194,000	1,846,000	2,225,000	2,294,000
Receivables turnover		8.86	8.09	8.48	7.99	10.82	8.26	8.39	7.94	10.78	8.11	8.43	7.44	9.42	8.40	7.14	7.98	12.40	8.65	7.38	6.63

June 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $15,304,000K ÷ $1,727,000K
= 8.86

Estee Lauder Companies Inc's receivables turnover has fluctuated over the past several quarters, ranging from a low of 6.63 to a high of 12.40. The receivables turnover ratio measures how efficiently a company is able to collect outstanding customer payments. A higher turnover ratio indicates that a company is collecting receivables more quickly.

The average receivables turnover for Estee Lauder over the period in question is approximately 8.57. This indicates that, on average, the company collects outstanding customer payments about 8.57 times a year. The fluctuations in the receivables turnover may suggest variations in the company's credit policies, customer payment behavior, or sales volume.

Overall, a higher receivables turnover ratio is generally preferred as it reflects effective credit management and timely collection of payments. However, it is essential to consider industry benchmarks and trends over time to fully assess the efficiency of Estee Lauder's receivables management.