Estee Lauder Companies Inc (EL)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,395,000 | 4,029,000 | 3,957,000 | 4,958,000 | 5,022,000 |
| Short-term investments | US$ in thousands | — | — | 24,000 | 15,000 | 15,000 |
| Total current liabilities | US$ in thousands | 5,702,000 | 6,240,000 | 5,815,000 | 5,298,000 | 5,179,000 |
| Cash ratio | 0.60 | 0.65 | 0.68 | 0.94 | 0.97 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,395,000K
+ $—K)
÷ $5,702,000K
= 0.60
The cash ratio of Estee Lauder Companies Inc has shown a decreasing trend over the past five years. The ratio was at its highest in 2021 at 0.97 and has since decreased to 0.60 as of June 30, 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has declined over the years. A lower cash ratio may suggest that the company has less liquidity to meet its immediate obligations. It is important for stakeholders to monitor this trend and assess the company's cash management and liquidity position to ensure its financial stability and ability to meet its short-term obligations.
Peer comparison
Jun 30, 2024