Estee Lauder Companies Inc (EL)

Operating profit margin

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Operating income	US$ in thousands	970,000	1,509,000	3,170,000	2,618,000	606,000
Revenue	US$ in thousands	15,298,000	15,699,000	17,552,000	16,007,000	14,164,000
Operating profit margin		6.34%	9.61%	18.06%	16.36%	4.28%

June 30, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $970,000K ÷ $15,298,000K
= 6.34%

The operating profit margin of Estee Lauder Companies Inc has shown fluctuation over the past five years. In Jun 30, 2020, the operating profit margin was relatively low at 4.28%, indicating lower profitability relative to revenue. However, there was a significant improvement in the following years, with the operating profit margin increasing to 16.36% in Jun 30, 2021 and further to 18.06% in Jun 30, 2022, reflecting a strong performance in generating profits from operations.

However, there was a notable decline in the operating profit margin in Jun 30, 2023 to 9.61%, possibly due to changes in cost structures or economic conditions. This decline continued into Jun 30, 2024, where the operating profit margin further decreased to 6.34%.

Overall, the trend in Estee Lauder Companies Inc's operating profit margin indicates some variability in its ability to generate profits from its core operations over the past five years. This fluctuation could be a result of various factors such as changes in costs, pricing strategies, or market conditions. Further analysis and monitoring of the company's performance would be necessary to understand the underlying reasons for these fluctuations.