Estee Lauder Companies Inc (EL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,395,000 | 3,701,000 | 3,939,000 | 3,090,000 | 4,029,000 | 5,531,000 | 3,725,000 | 2,938,000 | 3,957,000 | 3,836,000 | 4,603,000 | 3,995,000 | 4,958,000 | 6,399,000 | 5,545,000 | 4,267,000 | 5,022,000 | 4,876,000 | 3,596,000 | 2,259,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 1,000 | 5,000 | — | 24,000 | 10,000 | 6,000 | 9,000 | 15,000 | 7,000 | 11,000 | 13,000 | 15,000 | 14,000 | 3,000 | 4,000 |
| 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 |
| Cash ratio | 0.60 | 0.68 | 0.60 | 0.52 | 0.65 | 0.72 | 0.66 | 0.56 | 0.68 | 0.71 | 0.80 | 0.75 | 0.94 | 1.23 | 1.03 | 0.90 | 0.97 | 0.86 | 0.73 | 0.49 |
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 varying levels over the historical periods provided. The cash ratio measures a company's ability to cover its short-term liabilities using only its cash and cash equivalents.
From the data, we can observe fluctuations in the cash ratio, indicating changes in the company's liquidity position. The cash ratio was relatively stable around 0.60 to 0.70 from December 2019 to September 2022. It then increased to 0.94 in March 2021, signaling improved liquidity. Subsequently, the ratio reached a peak of 1.23 in March 2021, reflecting a significant increase in the company's cash reserves relative to its short-term obligations.
However, the cash ratio started to decline after March 2021, reaching the lowest point of 0.49 in September 2019. This downward trend suggests a potential decrease in the company's liquidity position or an increase in short-term liabilities compared to cash holdings.
Overall, while the cash ratio of Estee Lauder Companies Inc has demonstrated both strengths and weaknesses in its liquidity position over the periods examined, monitoring this ratio is crucial for assessing the company's ability to meet its short-term obligations using its available cash resources.
Peer comparison
Jun 30, 2024