The Estee Lauder (MEX:EL) ROCE %

: 8.63% (As of Mar. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. The Estee Lauder's annualized ROCE % for the quarter that ended in Mar. 2023 was 8.63%.

The Estee Lauder ROCE % Historical Data

The historical data trend for The Estee Lauder's ROCE % 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

ROCE %

24.37

27.08

12.24

22.40

20.28

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
ROCE %																18.17	2.33	18.22	15.44	8.63

The Estee Lauder ROCE % Calculation

The Estee Lauder's annualized ROCE % for the fiscal year that ended in Jun. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2022 )		(A: Jun. 2021 )		(A: Jun. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2022 )		(A: Jun. 2021 )		(A: Jun. 2022 )
	=	64437.954	/	( ( (437354.726 - 105461.988)	+	(420667.38 - 116986.17) )	/ 2 )
	=	64437.954	/	( (331892.738	+	303681.21)	/ 2 )
	=	64437.954	/	317786.974
	=	20.28 %

The Estee Lauder's ROCE % of for the quarter that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2023 )		(Q: Dec. 2022 )		(Q: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2023 )		(Q: Dec. 2022 )		(Q: Mar. 2023 )
	=	24369.8	/	( ( (404171.576 - 110249.88)	+	(409437.875 - 138792.5) )	/ 2 )
	=	24369.8	/	( ( 293921.696	+	270645.375 )	/ 2 )
	=	24369.8	/	282283.5355
	=	8.63 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2023) EBIT data.

The Estee Lauder (MEX:EL) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

The Estee Lauder ROCE % 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 » ROCE %

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.