Estee Lauder Companies Inc (EL)

Total asset 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
Total assets	US$ in thousands	19,892,000	21,677,000	23,415,000	20,910,000	21,971,000
Total asset turnover		0.72	0.72	0.68	0.85	0.74

June 30, 2025 calculation

Total asset turnover = Revenue ÷ Total assets
= $14,326,000K ÷ $19,892,000K
= 0.72

The total asset turnover ratio for Estee Lauder Companies Inc demonstrates fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. In the fiscal year ending June 30, 2021, the ratio stood at 0.74, indicating that the company generated approximately $0.74 in sales for every dollar of assets. This ratio increased to 0.85 in the following year ending June 30, 2022, reflecting an improvement in the efficiency with which the company utilized its assets to generate sales.

However, in the subsequent year ending June 30, 2023, the ratio declined to 0.68, signaling a decrease in asset utilization efficiency. The ratio then exhibited slight recovery, reaching 0.72 in both June 30, 2024, and June 30, 2025, suggesting a stabilization of asset efficiency levels following the prior decline.

Overall, the pattern indicates that while the company experienced a peak in asset efficiency in 2022, subsequent years showed decreased or stabilized asset turnover ratios. These movements may reflect changes in operational efficiency, sales strategies, or shifts in asset management practices over this period. The observed variations underscore the importance of monitoring asset utilization trends to evaluate the company's operational effectiveness consistently.