Estee Lauder Companies Inc (EL)
Quick ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,921,000 | 3,395,000 | 4,029,000 | 3,957,000 | 4,958,000 |
| Short-term investments | US$ in thousands | — | — | — | 24,000 | 15,000 |
| Receivables | US$ in thousands | 1,530,000 | 1,727,000 | 1,452,000 | 1,629,000 | 1,702,000 |
| Total current liabilities | US$ in thousands | 5,435,000 | 5,702,000 | 6,240,000 | 5,815,000 | 5,298,000 |
| Quick ratio | 0.82 | 0.90 | 0.88 | 0.96 | 1.26 |
June 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,921,000K
+ $—K
+ $1,530,000K)
÷ $5,435,000K
= 0.82
The quick ratio of Estee Lauder Companies Inc. demonstrates a declining trend over the examined period, which spans from June 30, 2021, to June 30, 2025. Specifically, the ratio was 1.26 in 2021, indicating that the company's most liquid assets exceeded its current liabilities by 26%. In the subsequent year, 2022, the quick ratio decreased to 0.96, signaling a reduction in liquidity but still maintaining a relatively comfortable buffer of liquid assets to cover immediate liabilities. By 2023, the ratio further declined to 0.88, approaching the threshold where liquid assets are less than current liabilities, which may suggest tightening liquidity position or increased reliance on other forms of current assets. The ratio experienced a slight increase to 0.90 in 2024, possibly reflecting marginal improvements in liquid asset holdings or reductions in current liabilities. However, by 2025, the ratio decreased again to 0.82, indicating a continued decrease in the company's liquidity position relative to current liabilities.
This downward trajectory signals a gradual reduction in Estee Lauder's liquidity margin, which could be indicative of shifting asset composition, increased current liabilities, or strategic operational changes. While the decreasing trend suggests a need for closer scrutiny of the company's short-term financial health, it remains important to also consider other liquidity metrics and overall financial context to fully assess the company's capacity to meet its short-term obligations.
Peer comparison
Jun 30, 2025