Estee Lauder Companies Inc (EL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.08 | 3.95 | 4.08 | 4.24 | 4.19 | 3.87 | 3.51 | 3.62 | 3.74 | 3.47 | 3.55 | 3.55 | 3.63 | 3.60 | 3.61 | 4.02 | 4.52 | 4.24 | 3.92 | 3.41 |
Based on the provided data, Estee Lauder Companies Inc has consistently maintained low levels of leverage over the past several quarters as evidenced by its debt-to-assets, debt-to-capital, and debt-to-equity ratios all being zero. This indicates that the company has not taken on any debt relative to its assets, capital, or equity during these periods.
The financial leverage ratio, which measures the extent to which a company relies on debt to finance its assets, has fluctuated over the quarters but generally remained below 4. This implies that the company's assets are predominantly funded through equity rather than debt. A lower financial leverage ratio typically indicates lower financial risk and greater financial stability for the company.
Overall, Estee Lauder Companies Inc's solvency ratios suggest a conservative capital structure with limited reliance on debt financing, which can be viewed positively by investors and creditors as it indicates a lower risk of financial distress.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.57 | 3.10 | 2.75 | 3.11 | 5.92 | 8.05 | 11.24 | 16.94 | 18.98 | 19.91 | 18.95 | 16.75 | 15.13 | 10.14 | 7.42 | 6.39 | 7.42 | 13.78 | 19.56 | 19.50 |
The interest coverage ratio of Estee Lauder Companies Inc has varied over the periods shown in the table. In general, a higher interest coverage ratio indicates a healthier financial position, as it shows the company's ability to meet its interest obligations from its operating income.
Looking at the trends in the data, we can see that the interest coverage ratio fluctuated over time. In the earlier periods, from December 2019 to June 2020, the interest coverage ratio ranged from 6.39 to 13.78, indicating a relatively stable ability to cover interest payments.
However, in more recent periods, from September 2020 to June 2023, the interest coverage ratio saw a significant increase, reaching a peak of 19.91 in March 2022. This indicates a strong improvement in the company's ability to cover its interest expenses from operating income during this period.
Subsequently, the interest coverage ratio decreased in the later periods, from March 2023 to June 2024, but still remained above 2, indicating that Estee Lauder Companies Inc continues to have adequate earnings to cover its interest payments.
Overall, the trend in Estee Lauder's interest coverage ratio shows both stability and improvement in its ability to meet its interest obligations, suggesting a favorable financial position.