Estee Lauder Companies Inc (EL)

Working capital turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	15,304,000	15,004,000	14,853,000	15,247,000	15,705,000	15,722,000	16,211,000	17,114,000	17,557,000	17,920,000	17,531,000	16,850,000	16,025,000	14,572,000	14,072,000	14,451,000	14,801,000	15,961,000	16,428,000	15,202,000
Total current assets	US$ in thousands	7,922,000	8,534,000	8,915,000	8,585,000	9,139,000	11,247,000	9,367,000	8,866,000	9,298,000	9,500,000	9,955,000	9,486,000	9,768,000	10,997,000	10,291,000	8,795,000	8,892,000	9,233,000	8,348,000	7,022,000
Total current liabilities	US$ in thousands	5,702,000	5,416,000	6,574,000	5,914,000	6,240,000	7,700,000	5,655,000	5,271,000	5,815,000	5,414,000	5,762,000	5,319,000	5,298,000	5,197,000	5,420,000	4,744,000	5,179,000	5,681,000	4,953,000	4,590,000
Working capital turnover		6.89	4.81	6.34	5.71	5.42	4.43	4.37	4.76	5.04	4.39	4.18	4.04	3.59	2.51	2.89	3.57	3.99	4.49	4.84	6.25

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,304,000K ÷ ($7,922,000K – $5,702,000K)
= 6.89

Estee Lauder Companies Inc's working capital turnover has fluctuated over the past several quarters, ranging from a low of 2.51 to a high of 6.89. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates that the company is effectively utilizing its working capital to drive sales.

In the most recent quarter, the working capital turnover ratio was 6.34, which suggests that Estee Lauder's working capital was able to support a high level of sales activity. This could be a positive sign of operational efficiency and effective management of working capital resources.

It is important to note that while a high working capital turnover ratio is generally favorable, it is essential for companies to strike a balance between efficient working capital management and maintaining adequate liquidity to support ongoing operations and growth initiatives. Further analysis of the company's working capital trends and financial performance would provide additional insights into its overall financial health and efficiency.