Estee Lauder Companies Inc (EL)

Receivables 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
Revenue (ttm)	US$ in thousands	14,326,000	14,786,000	15,176,000	15,451,000	15,608,000	15,346,000	15,157,000	15,498,000	15,910,000	15,862,000	16,356,000	17,275,000	17,737,000	18,112,000	17,731,000	17,045,000	16,215,000	14,709,000	14,190,000	13,961,000
Receivables	US$ in thousands	1,530,000	1,792,000	1,611,000	1,977,000	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
Receivables turnover		9.36	8.25	9.42	7.82	9.04	8.28	8.65	8.12	10.96	8.33	8.47	8.01	10.89	8.20	8.53	7.53	9.53	8.48	7.20	7.70

June 30, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $14,326,000K ÷ $1,530,000K
= 9.36

The receivables turnover ratio for Estee Lauder Companies Inc. exhibits notable fluctuations over the analyzed period, reflecting variations in the company's effectiveness in collecting receivables. At the beginning of the observed timeframe, as of September 30, 2020, the ratio stood at 7.70 times, indicating the company collected receivables approximately 7.7 times annually. This ratio decreased slightly by December 31, 2020, to 7.20, suggesting a marginal slowdown in collection efforts or changes in credit policies.

In early 2021, the ratio increased significantly to 8.48 by March 31, 2021, and further rose to 9.53 by June 30, 2021, denoting improved efficiency in receivables collection, possibly driven by strengthened credit management or increased sales collections. Subsequently, the ratio experienced a mild decline to 7.53 by September 30, 2021, then increased again to 8.53 at the end of 2021. During 2022, the ratio fluctuated, reaching a high of 10.89 in June 2022, indicating a peak in collection efficiency, before decreasing to 8.01 by September 2022 and oscillating thereafter within an approximately 8 to 9 range.

A significant uptick occurred in June 2022 with the ratio reaching 10.89, the highest in the period analyzed, which may reflect enhanced credit and collection policies or favorable sales cycles. Following this peak, the ratio stabilized around 8 to 9 in subsequent periods, with a shorter-term high of 9.42 in December 2024.

Overall, the receivables turnover ratio has shown periods of improvement and decline, with notable peaks in mid-2022 and mid-2024. These fluctuations could be attributed to seasonal sales effects, changes in credit terms, collection strategies, or shifts in customer payment behaviors. The observed trend suggests that the company's receivables collection efficiency has generally been maintained within a range, occasionally improving to optimize cash flow and working capital or facing temporary challenges impacting collection speed.