Estee Lauder Companies Inc (EL)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 970,000 | 1,509,000 | 3,170,000 | 2,618,000 | 1,195,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,314,000 | 5,585,000 | 5,590,000 | 6,057,000 | 3,935,000 |
| Return on total capital | 18.25% | 27.02% | 56.71% | 43.22% | 30.37% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $970,000K ÷ ($—K + $5,314,000K)
= 18.25%
The return on total capital for Estee Lauder Companies Inc has shown a fluctuating trend over the past five years. In Jun 2020, the return was at 30.37%, and then it increased to 43.22% in Jun 2021. However, there was a significant spike in Jun 2022, reaching 56.71%. Subsequently, the return declined to 27.02% in Jun 2023 and further dropped to 18.25% in Jun 2024.
This indicates that the company's ability to generate profits from its total capital has been volatile in recent years, with periods of high and low returns. Further analysis would be needed to understand the factors driving these fluctuations and to assess the company's overall financial performance and efficiency in utilizing its total capital resources.
Peer comparison
Jun 30, 2024