Estee Lauder Companies Inc (EL)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,922,000 | 9,139,000 | 9,298,000 | 9,768,000 | 8,892,000 |
| Total current liabilities | US$ in thousands | 5,702,000 | 6,240,000 | 5,815,000 | 5,298,000 | 5,179,000 |
| Current ratio | 1.39 | 1.46 | 1.60 | 1.84 | 1.72 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,922,000K ÷ $5,702,000K
= 1.39
The current ratio of Estee Lauder Companies Inc has shown a declining trend over the past five years. As of June 30, 2024, the current ratio stands at 1.39, indicating a decrease from the previous year's ratio of 1.46. The current ratio was higher in the earlier years, with figures of 1.60 in 2022, 1.84 in 2021, and 1.72 in 2020.
A current ratio below 2.0 generally suggests that the company may have difficulty meeting its short-term obligations using its current assets. The decreasing trend in the current ratio over the years may indicate potential liquidity challenges for Estee Lauder Companies Inc. Investors and stakeholders may monitor this trend closely to assess the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Jun 30, 2024