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The Estee Lauder (MEX:EL) ROE %

: 27.30% (As of Dec. 2022)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. The Estee Lauder's annualized net income for the quarter that ended in Dec. 2022 was MXN30,913 Mil. The Estee Lauder's average Total Stockholders Equity over the quarter that ended in Dec. 2022 was MXN113,243 Mil. Therefore, The Estee Lauder's annualized ROE % for the quarter that ended in Dec. 2022 was 27.30%.

The historical rank and industry rank for The Estee Lauder's ROE % or its related term are showing as below:

MEX:EL' s ROE % Range Over the Past 10 Years
Min: 16.44   Med: 32.56   Max: 57.45
Current: 25.41

During the past 13 years, The Estee Lauder's highest ROE % was 57.45%. The lowest was 16.44%. And the median was 32.56%.

MEX:EL's ROE % is ranked better than
89.96% of 1783 companies
in the Consumer Packaged Goods industry
Industry Median: 6.36 vs MEX:EL: 25.41

The Estee Lauder ROE % Historical Data

The historical data trend for The Estee Lauder's ROE % 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.

* Premium members only.

The Estee Lauder Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.75 38.30 17.71 54.99 41.02

The Estee Lauder Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 72.27 35.76 3.49 35.27 27.30

Competitive Comparison

For the Household & Personal Products subindustry, The Estee Lauder's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution

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

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



The Estee Lauder ROE % Calculation

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

ROE %=Net Income (A: Jun. 2022 )/( (Total Stockholders Equity (A: Jun. 2021 )+Total Stockholders Equity (A: Jun. 2022 ))/ count )
=47824.139042885/( (121330.18968288+111856.45910031)/ 2 )
=47824.139042885/116593.32439159
=41.02 %

The Estee Lauder's annualized ROE % for the quarter that ended in Dec. 2022 is calculated as

ROE %=Net Income (Q: Dec. 2022 )/( (Total Stockholders Equity (Q: Sep. 2022 )+Total Stockholders Equity (Q: Dec. 2022 ))/ count )
=30912.924810768/( (110720.12122001+115766.54964032)/ 2 )
=30912.924810768/113243.33543017
=27.30 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2022) net income data. ROE % is displayed in the 30-year financial page.


The Estee Lauder  (MEX:EL) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2022 )
=Net Income/Total Stockholders Equity
=30912.924810768/113243.33543017
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(30912.924810768 / 362481.50412626)*(362481.50412626 / 403895.83037591)*(403895.83037591 / 113243.33543017)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.53 %*0.8975*3.5666
=ROA %*Equity Multiplier
=7.66 %*3.5666
=27.30 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2022 )
=Net Income/Total Stockholders Equity
=30912.924810768/113243.33543017
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (30912.924810768 / 41740.294414539) * (41740.294414539 / 60492.043221071) * (60492.043221071 / 362481.50412626) * (362481.50412626 / 403895.83037591) * (403895.83037591 / 113243.33543017)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7406 * 0.69 * 16.69 % * 0.8975 * 3.5666
=27.30 %

Note: The net income data used here is four times the quarterly (Dec. 2022) net income data. The Revenue data used here is four times the quarterly (Dec. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


The Estee Lauder ROE % Related Terms

Thank you for viewing the detailed overview of The Estee Lauder's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Estee Lauder (MEX:EL) Business Description

The Estee Lauder logo
Traded in Other Exchanges
Address
767 Fifth Avenue, New York, NY, USA, 10153
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.

The Estee Lauder (MEX:EL) Headlines