The Estee Lauder (MEX:EL) Cash Conversion Cycle

: 177.17 (As of Mar. 2023)

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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

The Estee Lauder's Days Sales Outstanding for the three months ended in Mar. 2023 was 48.58.
The Estee Lauder's Days Inventory for the three months ended in Mar. 2023 was 252.59.
The Estee Lauder's Days Payable for the three months ended in Mar. 2023 was 124.
Therefore, The Estee Lauder's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2023 was 177.17.

The Estee Lauder Cash Conversion Cycle Historical Data

The historical data trend for The Estee Lauder's Cash Conversion Cycle 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.

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The Estee Lauder Annual Data

Trend

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Cash Conversion Cycle

102.95

93.00

102.24

122.29

114.74

The Estee Lauder Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Cash Conversion Cycle																155.20	157.04	165.44	162.30	177.17

Competitive Comparison

For the Household & Personal Products subindustry, The Estee Lauder's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle 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.

Annual Data Quarterly Data

The Estee Lauder Cash Conversion Cycle Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where The Estee Lauder's Cash Conversion Cycle falls in comparison to its industry or sector. The grey bar indicates the Cash Conversion Cycle's extreme value range as defined by GuruFocus.

The Estee Lauder Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

The Estee Lauder's Cash Conversion Cycle for the fiscal year that ended in Jun. 2022 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	34.09	+	228.86	-	148.21
	=	114.74

The Estee Lauder's Cash Conversion Cycle for the quarter that ended in Mar. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	48.58	+	252.59	-	124
	=	177.17

The Estee Lauder (MEX:EL) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.

Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.

The Estee Lauder Cash Conversion Cycle Related Terms

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The Estee Lauder (MEX:EL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » The Estee Lauder Companies Inc (MEX:EL) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

EL:USA ELAA:Germany ELCI34:Brazil ESLA:Austria

Address

767 Fifth Avenue, New York, NY, USA, 10153

Website

https://www.elcompanies.com

Estee Lauder is the world leader in the global prestige beauty market, participating across skincare (56% of fiscal 2022 sales), makeup (26%), fragrance (14%), and haircare (4%) categories, with popular brands such as Estee Lauder, Clinique, MAC, La Mer, Jo Malone, Aveda, Bobbi Brown, Too Faced, Origins, Dr. Jart+, and The Ordinary. The firm operates in 150 countries, with 26% of fiscal 2022 revenue stemming from the Americas, 43% from Europe, the Middle East and Africa, and 31% from Asia-Pacific. The company sells its products through department stores, travel retail, multibrand specialty beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.