Estee Lauder Companies Inc (EL)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 1,727,000 | 1,452,000 | 1,629,000 | 1,702,000 | 1,194,000 |
| Total current liabilities | US$ in thousands | 5,702,000 | 6,240,000 | 5,815,000 | 5,298,000 | 5,179,000 |
| Quick ratio | 0.90 | 0.88 | 0.96 | 1.26 | 1.20 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,395,000K
+ $—K
+ $1,727,000K)
÷ $5,702,000K
= 0.90
The quick ratio of Estee Lauder Companies Inc has shown a downward trend over the past five years. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.
In 2024, the quick ratio is 0.90, indicating that the company has $0.90 in liquid assets available to cover each dollar of its current liabilities. This implies a slight decrease from the previous year's quick ratio of 0.88.
Comparing the current quick ratio to the ratios of the previous years, we observe a declining trend in the company's ability to quickly cover its short-term obligations. In 2023, the quick ratio was 0.88, in 2022 it was 0.96, in 2021 it was 1.26, and in 2020 it was 1.20.
A quick ratio below 1.0 may suggest that the company may have difficulty meeting its short-term obligations with its current liquid assets alone. It is essential for investors and analysts to monitor this trend closely as it could indicate potential liquidity issues or inefficiencies in managing short-term assets and liabilities.
Peer comparison
Jun 30, 2024