Estee Lauder Companies Inc (EL)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.39 | 1.58 | 1.36 | 1.45 | 1.46 | 1.46 | 1.66 | 1.68 | 1.60 | 1.75 | 1.73 | 1.78 | 1.84 | 2.12 | 1.90 | 1.85 | 1.72 | 1.63 | 1.69 | 1.53 |
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 exhibited fluctuations over the past few quarters, ranging between 1.36 and 2.12. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a strong liquidity position.
The ratio was relatively stable around 1.6 to 1.7 from Dec 2021 to Sep 2022, indicating a healthy balance between current assets and liabilities during that period. However, the current ratio increased significantly to 2.12 in Mar 2021, signaling an increased ability to meet short-term obligations comfortably.
More recently, the current ratio has fluctuated between 1.36 and 1.58, showing a slight decrease in liquidity compared to previous periods. A ratio of around 1.4 to 1.6 is generally considered acceptable in most industries, indicating that Estee Lauder Companies Inc has the ability to meet its short-term obligations with some margin of safety.
Overall, while the current ratio has shown some variability, Estee Lauder Companies Inc appears to maintain a satisfactory level of liquidity to cover its short-term liabilities effectively. It is important for the company to continue monitoring and managing its current assets and liabilities to sustain its liquidity position in the future.
Peer comparison
Jun 30, 2024