Estee Lauder Companies Inc (EL)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	-1,133,000	390,000	1,006,000	2,390,000	2,870,000
Total assets	US$ in thousands	19,892,000	21,677,000	23,415,000	20,910,000	21,971,000
ROA		-5.70%	1.80%	4.30%	11.43%	13.06%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $-1,133,000K ÷ $19,892,000K
= -5.70%

The return on assets (ROA) for Estee Lauder Companies Inc. has exhibited a declining trend over the examined period from June 30, 2021, to June 30, 2025. Specifically, the ROA decreased from 13.06% in 2021 to 11.43% in 2022, reflecting a slight reduction in the company's efficiency in generating profit from its assets. The downward movement became more pronounced in subsequent years, with the ROA declining sharply to 4.30% in 2023. This decline indicates that the company's asset utilization or profitability from its assets is diminishing significantly during this period. The downward trajectory continued into 2024, with the ROA further dropping to 1.80%, suggesting a continued deterioration in operational efficiency or profitability. By June 30, 2025, the ROA turned negative at -5.70%, indicating that the company is generating losses relative to its asset base, which is a concerning sign of financial distress or substantial operational challenges. Overall, the trend demonstrates a marked deterioration in the company's ability to convert its assets into profits, culminating in negative returns in the latest period analyzed.