Estee Lauder Companies Inc (EL)

Net 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
Net income (ttm)	US$ in thousands	409,000	642,000	467,000	551,000	1,010,000	1,093,000	1,508,000	2,197,000	2,401,000	3,361,000	3,247,000	3,034,000	2,863,000	1,390,000	928,000	612,000	684,000	1,303,000	1,864,000	1,880,000
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
Net profit margin		2.67%	4.28%	3.14%	3.61%	6.43%	6.95%	9.30%	12.84%	13.68%	18.76%	18.52%	18.01%	17.87%	9.54%	6.59%	4.24%	4.62%	8.16%	11.35%	12.37%

June 30, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $409,000K ÷ $15,304,000K
= 2.67%

Estee Lauder Companies Inc's net profit margin has shown fluctuations over the past few quarters. The net profit margin measures the company's profitability by indicating the percentage of revenue that translates into profit after all expenses are deducted.

In the recent quarter ending June 30, 2024, the net profit margin was 2.67%, which indicates that the company retained approximately 2.67% of its revenue as profit. This figure is lower compared to the previous quarter, where the net profit margin was 4.28%.

Looking at a longer trend, the net profit margin has been declining over the past several quarters. From a high of 18.76% in the quarter ending March 31, 2022, it has decreased to the current level of 2.67%. This downward trend may raise concerns about the company's ability to maintain profitability in the face of various operational and economic challenges.

It is essential for investors and stakeholders to monitor the net profit margin closely as it provides insights into the company's financial health and efficiency in managing costs to generate profits. Further analysis and consideration of the company's overall financial performance and strategies are recommended to better understand the factors driving the changes in the net profit margin.