The Estee Lauder (MEX:EL) Inventory Turnover

: 0.36 (As of Mar. 2023)

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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. The Estee Lauder's Cost of Goods Sold for the three months ended in Mar. 2023 was MXN20,891 Mil. The Estee Lauder's Average Total Inventories for the quarter that ended in Mar. 2023 was MXN57,828 Mil. The Estee Lauder's Inventory Turnover for the quarter that ended in Mar. 2023 was 0.36.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. The Estee Lauder's Days Inventory for the three months ended in Mar. 2023 was 252.59.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. The Estee Lauder's Inventory-to-Revenue for the quarter that ended in Mar. 2023 was 0.86.

The Estee Lauder Inventory Turnover Historical Data

The historical data trend for The Estee Lauder's Inventory Turnover 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

Inventory Turnover

1.91

1.85

1.90

1.57

1.59

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
Inventory Turnover																0.36	0.36	0.34	0.39	0.36

The Estee Lauder Inventory Turnover Calculation

The Estee Lauder's Inventory Turnover for the fiscal year that ended in Jun. 2022 is calculated as

	Inventory Turnover (A: Jun. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2022 )	/ (	(Total Inventories (A: Jun. 2021 )	+	Total Inventories (A: Jun. 2022 ))	/	count )
=	86607.99	/ (	(49864.53	+	58744.56)	/	2 )
=	86607.99	/	54304.545
=	1.59

The Estee Lauder's Inventory Turnover for the quarter that ended in Mar. 2023 is calculated as

	Inventory Turnover (Q: Mar. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2023 )	/ (	(Total Inventories (Q: Dec. 2022 )	+	Total Inventories (Q: Mar. 2023 ))	/	count )
=	20890.975	/ (	(59833.224	+	55823.425)	/	2 )
=	20890.975	/	57828.3245
=	0.36

The Estee Lauder (MEX:EL) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

The Estee Lauder's Days Inventory for the three months ended in Mar. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2023 )	/	Cost of Goods Sold (Q: Mar. 2023 )	*	Days in Period
	=	57828.3245	/	20890.975	*	365 / 4
	=	252.59

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

The Estee Lauder's Inventory to Revenue for the quarter that ended in Mar. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2023 )	/	Revenue (Q: Mar. 2023 )
	=	57828.3245	/	67611.775
	=	0.86

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

The Estee Lauder Inventory Turnover 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 » Inventory Turnover

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.