Accounts Receivable are created when a customer has received a product but has not yet paid for that product. The Estee Lauder's accounts receivables for the quarter that ended in Dec. 2023 was $1,752 Mil.
Accounts receivable can be measured by Days Sales Outstanding.
The Estee Lauder's Days Sales Outstanding for the quarter that ended in Dec. 2023 was 37.36.
In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. The Estee Lauder's Net-Net Working Capital per share for the quarter that ended in Dec. 2023 was $-30.74.
The Estee Lauder Accounts Receivable Historical Data
The historical data trend for The Estee Lauder's Accounts Receivable can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.
The Estee Lauder Accounts Receivable Explanation
1. Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Days Sales Outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed.
The Estee Lauder's Days Sales Outstanding for the quarter that ended in Dec. 2023 is calculated as:
2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), The Estee Lauder's accounts receivable are only considered to be worth 75% of book value:
The Estee Lauder's Net-Net Working Capital Per Share for the quarter that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net receivables tells us a great deal about the different competitors in the same industry. In competitive industries, some attempt to gain advantage by offering better credit terms, causing increase in sales and receivables.
If company consistently shows lower % Net receivables to gross sales than competitors, then it usually has some kind of competitive advantage which requires further digging.
Average Days Sales Outstanding is a good indicator for measuring a company's sales channel and customers. A company may book great revenue and earnings growth but never receive payment from their customers. This may force a write-off in the future and depress future earnings.
The Estee Lauder Accounts Receivable Related Terms
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The Estee Lauder (The Estee Lauder) Business Description
Estee Lauder is a leader in the global prestige beauty market, participating across skin care (56% of 2022 sales), makeup (26%), fragrance (14%), and hair care (4%) categories, with top-selling brands such as Estee Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins. The firm operates in more than 150 countries, generating 26% of revenue from the Americas, 43% from Europe, the Middle East and Africa (including travel retail), and 31% from Asia Pacific. Estee Lauder sells its products through department stores, travel retail, specialty multibrand beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.
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