Estee Lauder Companies Inc (EL)
Total asset 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 |
| Total assets | US$ in thousands | 21,677,000 | 23,415,000 | 20,910,000 | 21,971,000 | 17,781,000 |
| Total asset turnover | 0.71 | 0.67 | 0.84 | 0.73 | 0.80 |
June 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $15,298,000K ÷ $21,677,000K
= 0.71
Estee Lauder Companies Inc's total asset turnover has fluctuated over the past five years, ranging from 0.67 to 0.84. The ratio measures the efficiency of the company in generating sales from its total assets. A higher total asset turnover indicates that the company is utilizing its assets more effectively to generate revenue.
In 2024, the total asset turnover decreased to 0.71 from the previous year's 0.84. This may suggest that Estee Lauder Companies Inc was less efficient in generating sales from its total assets in 2024 compared to 2023.
On the other hand, in 2022, the total asset turnover improved to 0.84, reflecting a more efficient use of assets to generate revenue. The company may have implemented strategies to optimize asset utilization during this period.
Overall, while there have been fluctuations in Estee Lauder Companies Inc's total asset turnover, it is essential to further investigate the underlying reasons for these changes to assess the company's operational efficiency and asset management.
Peer comparison
Jun 30, 2024