Estee Lauder Companies Inc (EL)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -785,000 | -628,000 | -403,000 | 751,000 | 970,000 | 1,198,000 | 964,000 | 946,000 | 1,509,000 | 1,540,000 | 1,981,000 | 2,843,000 | 3,117,000 | 3,325,000 | 3,203,000 | 2,848,000 | 2,618,000 | 1,841,000 | 1,334,000 | 532,000 |
| Total assets | US$ in thousands | 19,892,000 | 19,886,000 | 19,760,000 | 21,317,000 | 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 |
| Operating ROA | -3.95% | -3.16% | -2.04% | 3.52% | 4.47% | 5.28% | 4.14% | 4.18% | 6.44% | 6.78% | 9.56% | 14.22% | 14.91% | 15.57% | 14.51% | 13.20% | 11.92% | 9.25% | 6.81% | 2.97% |
June 30, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-785,000K ÷ $19,892,000K
= -3.95%
The operating return on assets (ROA) for Estee Lauder Companies Inc. exhibits a notable upward trend from September 30, 2020, through March 31, 2022. Specifically, it increased from approximately 2.97% in September 2020 to a peak of around 15.57% in March 2022, indicating a period of strong operational efficiency and effective asset utilization.
Following this peak, the metric demonstrates a decline over the subsequent periods. By June 30, 2022, it slightly decreased to 14.91%, and further declined to 14.22% by September 2022. The downward trend continued into late 2022 and early 2023, with the ROA diminishing to 9.56% in December 2022, and subsequently dropping to approximately 6.78% in March 2023 and 6.44% in June 2023. This decline reflects reduced operational efficiency or profitability relative to the company's asset base.
The trend persisted into late 2023, with the operating ROA falling to 4.18% in September 2023 and marginally declining thereafter, reaching 4.14% at the end of December 2023. In the first quarter of 2024, a slight uptick is observed to 5.28%, but the figure remains well below the previous peak levels. Moving into mid-2024, the ratio decreased again, reaching approximately 4.47% in June 2024 and further down to 3.52% by September 2024.
The data indicates that by the end of 2024 and into 2025, the company's operating ROA has turned negative, with values of -2.04% on December 31, 2024, and continuing negative at -3.16% in March 2025, ultimately reaching -3.95% by June 2025. The negative figures suggest that, during these periods, the company's operations are not generating sufficient profit from its assets, possibly due to declining sales, increased costs, or operational challenges.
Overall, the trend demonstrates a significant deterioration in Estee Lauder's operational efficiency relative to its asset base from its historical highs in early 2022, reversing into persistent negative territory by early 2025. This downturn could be indicative of broader strategic, market, or industry-specific difficulties impacting profitability and asset utilization.
Peer comparison
Jun 30, 2025