Estee Lauder Companies Inc (EL)
Working capital 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 current assets | US$ in thousands | 7,069,000 | 7,922,000 | 9,139,000 | 9,298,000 | 9,768,000 |
| Total current liabilities | US$ in thousands | 5,435,000 | 5,702,000 | 6,240,000 | 5,815,000 | 5,298,000 |
| Working capital turnover | 8.77 | 7.03 | 5.49 | 5.09 | 3.63 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,326,000K ÷ ($7,069,000K – $5,435,000K)
= 8.77
The working capital turnover ratio for Estee Lauder Companies Inc. demonstrates a consistent upward trend across the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 3.63 in 2021 to 5.09 in 2022, reflecting an improvement in the company's efficiency in utilizing its working capital to generate sales. The ratio continued to rise in 2023 to 5.49, indicating further enhancements in operational efficiency. This upward trajectory persisted through 2024, reaching 7.03, and culminated in a significant increase to 8.77 in 2025.
This trend suggests that Estee Lauder has progressively optimized its management of working capital, enabling it to generate higher sales relative to its working capital investment. The substantial growth in the ratio over these years indicates effective operational practices, potential improvements in inventory management, receivables collection, and payables management, or a combination thereof. Overall, the increasing working capital turnover reflects favorable operational efficiency and a potentially more liquid and agile working capital management strategy.
Peer comparison
Jun 30, 2025