Estee Lauder Companies Inc (EL)
Return on equity (ROE)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 409,000 | 1,010,000 | 2,401,000 | 2,863,000 | 684,000 |
| Total stockholders’ equity | US$ in thousands | 5,314,000 | 5,585,000 | 5,590,000 | 6,057,000 | 3,935,000 |
| ROE | 7.70% | 18.08% | 42.95% | 47.27% | 17.38% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $409,000K ÷ $5,314,000K
= 7.70%
Estee Lauder Companies Inc's return on equity (ROE) has fluctuated over the past five years. In June 2022, the ROE was at its highest point, reaching 42.95%, indicating that the company was generating significant returns for its shareholders relative to their equity investment. However, in the following years, the ROE declined to 18.08% in 2023 and further decreased to 7.70% in 2024.
The decreasing trend in ROE suggests that the company's ability to generate profits from shareholders' equity has weakened over time. Factors such as changes in financial performance, capital structure, or operational efficiency could be influencing the declining ROE. Investors and analysts may want to investigate the underlying reasons for the decreasing ROE to assess the company's financial health and future prospects.
Peer comparison
Jun 30, 2024