Estee Lauder Companies Inc (EL)
Working capital 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 current assets | US$ in thousands | 7,922,000 | 9,139,000 | 9,298,000 | 9,768,000 | 8,892,000 |
| Total current liabilities | US$ in thousands | 5,702,000 | 6,240,000 | 5,815,000 | 5,298,000 | 5,179,000 |
| Working capital turnover | 6.89 | 5.42 | 5.04 | 3.58 | 3.81 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,298,000K ÷ ($7,922,000K – $5,702,000K)
= 6.89
Estee Lauder Companies Inc's working capital turnover has shown an increasing trend over the past five years. The ratio has improved from 3.81 in June 2020 to 6.89 in June 2024, indicating that the company is generating more revenue relative to its working capital investment.
A higher working capital turnover ratio suggests that Estee Lauder is efficiently utilizing its working capital to generate sales. This could be attributed to effective management of inventory, receivables, and payables.
The significant improvement in the working capital turnover ratio over the years reflects the company's ability to generate sales efficiently with relatively less investment in working capital. This efficiency may contribute to improved profitability and liquidity for Estee Lauder Companies Inc.
Peer comparison
Jun 30, 2024