Estee Lauder Companies Inc (EL)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 21,677,000 | 22,700,000 | 23,283,000 | 22,650,000 | 23,415,000 | 22,715,000 | 20,731,000 | 19,989,000 | 20,910,000 | 21,359,000 | 22,078,000 | 21,580,000 | 21,971,000 | 19,900,000 | 19,595,000 | 17,903,000 | 17,781,000 | 18,363,000 | 17,937,000 | 15,431,000 |
| Operating ROA | 4.47% | 5.28% | 4.14% | 4.18% | 6.44% | 7.01% | 9.81% | 14.49% | 15.16% | 15.57% | 14.51% | 13.20% | 11.92% | 9.25% | 6.81% | 2.97% | 3.41% | 7.43% | 10.76% | 15.81% |
June 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $970,000K ÷ $21,677,000K
= 4.47%
The operating return on assets (ROA) for Estee Lauder Companies Inc has shown fluctuations over the past few quarters. The operating ROA was at 4.47% for the quarter ending June 30, 2024, which is lower compared to the preceding quarter. The trend over the last few quarters indicates varying levels of operational efficiency in generating profits from its assets.
The operating ROA peaked at 15.81% in the quarter ending September 30, 2019, and has since trended downwards with occasional fluctuations. The company exhibited strong performance in terms of operating ROA in the quarters ending September 2022, June 2022, and March 2022, with values exceeding 15%. However, the operating ROA has been on a downward trajectory since then.
The recent downward trend in operating ROA suggests that the company may be experiencing challenges in efficiently utilizing its assets to generate operating profits. It is important for Estee Lauder Companies Inc to closely monitor and address any factors impacting its operational efficiency to improve its profitability levels in the future.
Peer comparison
Jun 30, 2024