Estee Lauder Companies Inc (EL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,395,000 | 3,701,000 | 3,939,000 | 3,090,000 | 4,029,000 | 5,531,000 | 3,725,000 | 2,938,000 | 3,957,000 | 3,836,000 | 4,603,000 | 3,995,000 | 4,958,000 | 6,399,000 | 5,545,000 | 4,267,000 | 5,022,000 | 4,876,000 | 3,596,000 | 2,259,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 1,000 | 5,000 | — | 24,000 | 10,000 | 6,000 | 9,000 | 15,000 | 7,000 | 11,000 | 13,000 | 15,000 | 14,000 | 3,000 | 4,000 |
| Receivables | US$ in thousands | 1,727,000 | 1,854,000 | 1,752,000 | 1,909,000 | 1,452,000 | 1,904,000 | 1,932,000 | 2,156,000 | 1,629,000 | 2,209,000 | 2,079,000 | 2,265,000 | 1,702,000 | 1,735,000 | 1,972,000 | 1,812,000 | 1,194,000 | 1,846,000 | 2,225,000 | 2,294,000 |
| 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 |
| Quick ratio | 0.90 | 1.03 | 0.87 | 0.85 | 0.88 | 0.97 | 1.00 | 0.97 | 0.96 | 1.12 | 1.16 | 1.18 | 1.26 | 1.57 | 1.39 | 1.28 | 1.20 | 1.19 | 1.18 | 0.99 |
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 fluctuated over the past few years, ranging from a low of 0.85 to a high of 1.57. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
An ideal quick ratio is typically considered to be 1 or higher, indicating that the company has enough liquid assets to cover its short-term liabilities. Estee Lauder's quick ratio has generally been above 1 in recent periods, suggesting that the company has a relatively strong ability to meet its short-term financial obligations.
It is notable that the quick ratio saw a significant increase in the first quarter of 2021, reaching 1.57, which may indicate a temporary increase in liquidity or a decrease in short-term liabilities during that period.
Overall, the trend of Estee Lauder's quick ratio indicates a generally healthy liquidity position, although analysts may want to investigate the reasons for the fluctuations in the ratio to understand the underlying drivers of the company's liquidity management.
Peer comparison
Jun 30, 2024