GURUFOCUS.COM » STOCK LIST » Latin America » Mexico » MEX » The Estee Lauder Companies Inc (MEX:EL) » Definitions » Return-on-Tangible-Asset
Switch to:

The Estee Lauder (MEX:EL) Return-on-Tangible-Asset

: 3.71% (As of Mar. 2023)
View and export this data going back to 2014. Start your Free Trial

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. The Estee Lauder's annualized Net Income for the quarter that ended in Mar. 2023 was MXN11,248 Mil. The Estee Lauder's average total tangible assets for the quarter that ended in Mar. 2023 was MXN302,822 Mil. Therefore, The Estee Lauder's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2023 was 3.71%.

The historical rank and industry rank for The Estee Lauder's Return-on-Tangible-Asset or its related term are showing as below:

MEX:EL' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 5.67   Med: 15.94   Max: 19.59
Current: 7.1

During the past 13 years, The Estee Lauder's highest Return-on-Tangible-Asset was 19.59%. The lowest was 5.67%. And the median was 15.94%.

MEX:EL's Return-on-Tangible-Asset is ranked better than
73.58% of 1851 companies
in the Consumer Packaged Goods industry
Industry Median: 2.84 vs MEX:EL: 7.10

The Estee Lauder Return-on-Tangible-Asset Historical Data

The historical data trend for The Estee Lauder's Return-on-Tangible-Asset 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
Return-on-Tangible-Asset
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.02 18.15 6.10 18.20 15.90

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
Return-on-Tangible-Asset 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 14.30 1.39 13.33 10.51 3.71

Competitive Comparison

For the Household & Personal Products subindustry, The Estee Lauder's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's Return-on-Tangible-Asset distribution charts can be found below:

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



The Estee Lauder Return-on-Tangible-Asset Calculation

The Estee Lauder's annualized Return-on-Tangible-Asset for the fiscal year that ended in Jun. 2022 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Jun. 2022 )  (A: Jun. 2021 )(A: Jun. 2022 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Jun. 2022 )  (A: Jun. 2021 )(A: Jun. 2022 )
=48082.02/( (303765.56+300985.398)/ 2 )
=48082.02/302375.479
=15.90 %

The Estee Lauder's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Mar. 2023 )  (Q: Dec. 2022 )(Q: Mar. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Mar. 2023 )  (Q: Dec. 2022 )(Q: Mar. 2023 )
=11247.6/( (295578.856+310066.05)/ 2 )
=11247.6/302822.453
=3.71 %

* 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2023) net income data.


The Estee Lauder  (MEX:EL) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


The Estee Lauder Return-on-Tangible-Asset Related Terms

Thank you for viewing the detailed overview of The Estee Lauder's Return-on-Tangible-Asset 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