The Estee Lauder (MEX:EL) ROC (Joel Greenblatt) %

: 23.99% (As of Mar. 2023)

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Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. The Estee Lauder's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2023 was 23.99%.

The historical rank and industry rank for The Estee Lauder's ROC (Joel Greenblatt) % or its related term are showing as below:

MEX:EL' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 31.54 Med: 76.34 Max: 112.11
Current: 31.54

During the past 13 years, The Estee Lauder's highest ROC (Joel Greenblatt) % was 112.11%. The lowest was 31.54%. And the median was 76.34%.

MEX:EL's ROC (Joel Greenblatt) % is ranked better than
81.29% of 1833 companies
in the Consumer Packaged Goods industry
Industry Median: 10.25 vs MEX:EL: 31.54

The Estee Lauder's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -6.80% per year.

The Estee Lauder ROC (Joel Greenblatt) % Historical Data

The historical data trend for The Estee Lauder's ROC (Joel Greenblatt) % 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

ROC (Joel Greenblatt) %

99.72

110.85

37.37

71.27

69.78

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
ROC (Joel Greenblatt) %																57.28	7.10	51.57	41.31	23.99

Competitive Comparison

For the Household & Personal Products subindustry, The Estee Lauder's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where The Estee Lauder's ROC (Joel Greenblatt) % falls in comparison to its industry or sector. The grey bar indicates the ROC (Joel Greenblatt) %'s extreme value range as defined by GuruFocus.

The Estee Lauder ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %

EBIT

Average of (Net fixed Assets

Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

	Working Capital		(Q: Dec. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(37666.272	+	59833.224	+	12496.936)	-	(82448.584	+	6706.624	+	9221.608)
=	11619.616

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(34319.6	+	55823.425	+	12887.875)	-	(76948.725	+	5515.65	+	9463.125)
=	11103.4

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of The Estee Lauder for the quarter that ended in Mar. 2023 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2022		Q: Mar. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	24369.8	/	( ( (92703.48 + max(11619.616, 0))	+	(87763.725 + max(11103.4, 0)) )	/	2 )
=	24369.8	/	( ( 104323.096	+	98867.125 )	/	2 )
=	24369.8	/	101595.1105
=	23.99 %

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

The Estee Lauder (MEX:EL) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.

The Estee Lauder ROC (Joel Greenblatt) % 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 » ROC (Joel Greenblatt) %

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.