Estee Lauder Companies Inc (EL)
Current ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.30 | 1.39 | 1.46 | 1.60 | 1.84 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,069,000K ÷ $5,435,000K
= 1.30
The current ratio of Estee Lauder Companies Inc. has demonstrated a declining trend over the analyzed periods. As of June 30, 2021, the current ratio stood at 1.84, indicating that current assets were 1.84 times greater than current liabilities, reflecting a relatively comfortable liquidity position. By June 30, 2022, the ratio decreased to 1.60, suggesting a modest reduction in liquidity cushion. This downward trajectory continued with a ratio of 1.46 on June 30, 2023, followed by further declines to 1.39 as of June 30, 2024, and reaching approximately 1.30 by June 30, 2025. The consistent decrease over these periods indicates a gradual reduction in the company's short-term liquidity relative to its current liabilities. While the ratios remain above 1.0, which generally signifies that the company maintains sufficient assets to cover its short-term obligations, the declining trend warrants ongoing monitoring to assess potential liquidity pressures and their implications for operational flexibility.
Peer comparison
Jun 30, 2025