Estee Lauder Companies Inc (EL)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	11,184,000	10,852,000	10,611,000	10,887,000	11,346,000	11,430,000	12,089,000	13,004,000	13,432,000	13,852,000	13,526,000	12,979,000	12,381,000	11,094,000	10,678,000	10,492,000	10,742,000	11,834,000	12,250,000	11,762,000
Revenue (ttm)	US$ in thousands	15,304,000	15,004,000	14,853,000	15,247,000	15,705,000	15,722,000	16,211,000	17,114,000	17,557,000	17,920,000	17,531,000	16,850,000	16,025,000	14,572,000	14,072,000	14,451,000	14,801,000	15,961,000	16,428,000	15,202,000
Gross profit margin		73.08%	72.33%	71.44%	71.40%	72.24%	72.70%	74.57%	75.98%	76.51%	77.30%	77.15%	77.03%	77.26%	76.13%	75.88%	72.60%	72.58%	74.14%	74.57%	77.37%

June 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $11,184,000K ÷ $15,304,000K
= 73.08%

The gross profit margin of Estee Lauder Companies Inc has exhibited fluctuating trends over the past several quarters. The margin has ranged from a low of 71.40% in September 2023 to a high of 77.37% in September 2019. Overall, the gross profit margin has shown a general downward trend in recent quarters, with a decrease from 73.08% in June 2024 to 77.37% in September 2019.

The gross profit margin represents the percentage of sales revenue that exceeds the cost of goods sold, indicating the efficiency of the company in managing production costs. A higher gross profit margin is typically preferred as it suggests better profitability and cost management. Estee Lauder's gross profit margin levels are relatively high, reflecting its ability to effectively control production costs and generate profits from its sales.

However, the decreasing trend in the gross profit margin in recent quarters may warrant further investigation into the factors impacting the company's profitability. It is important for Estee Lauder to closely monitor and address any potential cost pressures or pricing strategies that could be influencing its gross profit margin performance.