Estee Lauder Companies Inc (EL)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	21,677,000	23,415,000	20,910,000	21,971,000	17,781,000
Operating ROA		4.47%	6.44%	15.16%	11.92%	3.41%

June 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $970,000K ÷ $21,677,000K
= 4.47%

Estee Lauder Companies Inc's operating return on assets (operating ROA) has fluctuated over the past five years. In the most recent period ending June 30, 2024, the operating ROA stood at 4.47%, showing a decrease from the previous year's 6.44%. However, when compared to the figures from two and three years ago, the operating ROA appears lower, indicating a decline in profitability efficiency.

The highest operating ROA was observed in June 30, 2022, at 15.16%, reflecting a strong performance in utilizing its assets to generate operating income. This peak was followed by a slight decrease in the subsequent period, June 30, 2023, where the operating ROA was recorded at 11.92%.

Overall, the fluctuations in Estee Lauder Companies Inc's operating ROA over the past five years suggest varying levels of efficiency in generating operating income from its assets. It would be important to further investigate the factors influencing these changes to gain a deeper understanding of the company's operational performance.