Estee Lauder Companies Inc (EL)

Return on assets (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
Net income (ttm)	US$ in thousands	409,000	642,000	467,000	551,000	1,010,000	1,093,000	1,508,000	2,197,000	2,401,000	3,361,000	3,247,000	3,034,000	2,863,000	1,390,000	928,000	612,000	684,000	1,303,000	1,864,000	1,880,000
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
ROA		1.89%	2.83%	2.01%	2.43%	4.31%	4.81%	7.27%	10.99%	11.48%	15.74%	14.71%	14.06%	13.03%	6.98%	4.74%	3.42%	3.85%	7.10%	10.39%	12.18%

June 30, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $409,000K ÷ $21,677,000K
= 1.89%

Estee Lauder Companies Inc's return on assets (ROA) has shown some fluctuations over the past several quarters. The ROA peaked at 15.74% in March 2022, indicating that the company was generating $0.1574 in net income for every dollar of assets it had at that time. Since then, the ROA has generally decreased but remained positive. Notably, the ROA dropped to 1.89% in June 2024, suggesting a lower level of asset efficiency and profitability compared to prior periods.

The declining trend in ROA may be attributed to various factors, such as changes in operating efficiency, profitability, or asset utilization. Investors and stakeholders may need to monitor the company's performance closely to understand the reasons behind these shifts in ROA and assess the company's ability to generate profits from its assets efficiently.