Estee Lauder Companies Inc (EL)

Operating 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
Operating income (ttm)	US$ in thousands	970,000	1,198,000	964,000	946,000	1,509,000	1,593,000	2,034,000	2,896,000	3,170,000	3,325,000	3,203,000	2,848,000	2,618,000	1,841,000	1,334,000	532,000	606,000	1,365,000	1,930,000	2,440,000
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
Operating profit margin		6.34%	7.98%	6.49%	6.20%	9.61%	10.13%	12.55%	16.92%	18.06%	18.55%	18.27%	16.90%	16.34%	12.63%	9.48%	3.68%	4.09%	8.55%	11.75%	16.05%

June 30, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $970,000K ÷ $15,304,000K
= 6.34%

Estee Lauder Companies Inc's operating profit margin has fluctuated over the past quarters. The operating profit margin represents the percentage of revenue that remains as profit after deducting operating expenses. The trend shows a gradual decline from a high of 18.55% in March 2022 to 6.34% in June 2024.

In analyzing the data, we observe a peak in profitability in the third quarter of 2022 at 16.92%, followed by a steady decline in subsequent quarters. Factors contributing to this decline could include increased operating expenses, changes in revenue growth rates, or pricing pressures in the cosmetics industry.

It is important for Estee Lauder Companies Inc to closely monitor and manage their operating expenses to improve the operating profit margin in the future. Additionally, the company may need to focus on strategies to drive revenue growth and maintain a balance between cost control and investment in growth opportunities.