10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
The Estee Lauder's 10-Year ROIIC % for the quarter that ended in Jun. 2023 was 1.61%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for The Estee Lauder's 10-Year ROIIC % or its related term are showing as below:
EL's 10-Year ROIIC % is ranked worse than 54.66% of 1727
companies
in the Consumer Packaged Goods industry
Industry Median: 3.23
vs EL: 1.61
The Estee Lauder 10-Year ROIIC % Historical Data
The historical data trend for The Estee Lauder's 10-Year ROIIC % 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.
Competitive Comparison of The Estee Lauder's 10-Year ROIIC %
For the Household & Personal Products subindustry, The Estee Lauder's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Estee Lauder's 10-Year ROIIC % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where The Estee Lauder's 10-Year ROIIC % falls into.
The Estee Lauder 10-Year ROIIC % Calculation
The Estee Lauder's 10-Year ROIIC % for the quarter that ended in Jun. 2023 is calculated as:
10-Year ROIIC %
=
10-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
10-Year Incremental Invested Capital**
=
( 1280.433 (Jun. 2023) - 1081.8072 (Jun. 2013) )
/
( 16499 (Jun. 2023) - 4166.5 (Jun. 2013) )
=
198.6258
/
12332.5
=
1.61%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
The Estee Lauder (NYSE:EL) 10-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
The Estee Lauder 10-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of The Estee Lauder's 10-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
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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