Estee Lauder Companies Inc (EL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 970,000 | 1,198,000 | 964,000 | 946,000 | 1,509,000 | 1,593,000 | 2,034,000 | 2,896,000 | 3,170,000 | 3,325,000 | 3,203,000 | 2,848,000 | 2,618,000 | 1,825,000 | 1,329,000 | 1,111,000 | 1,195,000 | 1,984,000 | 2,621,000 | 2,555,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,314,000 | 5,744,000 | 5,712,000 | 5,342,000 | 5,585,000 | 5,877,000 | 5,902,000 | 5,517,000 | 5,590,000 | 6,150,000 | 6,218,000 | 6,081,000 | 6,057,000 | 5,528,000 | 5,421,000 | 4,452,000 | 3,935,000 | 4,329,000 | 4,574,000 | 4,530,000 |
| Return on total capital | 18.25% | 20.86% | 16.88% | 17.71% | 27.02% | 27.11% | 34.46% | 52.49% | 56.71% | 54.07% | 51.51% | 46.83% | 43.22% | 33.01% | 24.52% | 24.96% | 30.37% | 45.83% | 57.30% | 56.40% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $970,000K ÷ ($—K + $5,314,000K)
= 18.25%
Estee Lauder Companies Inc's return on total capital has experienced fluctuations over the past few quarters. The return on total capital was 18.25% as of June 30, 2024, which was a decrease from the 20.86% reported on March 31, 2024. Despite this recent decline, the company's return on total capital has generally been strong, with several quarters showing returns above 30%.
The highest return on total capital was reported on September 30, 2022, at 52.49%, followed closely by the returns in the following quarters. This indicates that Estee Lauder Companies Inc has been effectively utilizing its capital to generate profits.
It is important to note that the return on total capital can be influenced by various factors such as operational efficiency, profitability, and capital structure. Investors and analysts may consider the trend in return on total capital when evaluating the company's financial performance and efficiency in utilizing its capital resources.
Peer comparison
Jun 30, 2024