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

: 172.59% (As of Mar. 2023)

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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity 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 shareholder tangible equity for the quarter that ended in Mar. 2023 was MXN6,517 Mil. Therefore, The Estee Lauder's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2023 was 172.59%.

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

MEX:EL' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 43.77 Med: 66.49 Max: 3208.82
Current: 3208.82

During the past 13 years, The Estee Lauder's highest Return-on-Tangible-Equity was 3,208.82%. The lowest was 43.77%. And the median was 66.49%.

MEX:EL's Return-on-Tangible-Equity is ranked better than
96.09% of 1739 companies
in the Consumer Packaged Goods industry
Industry Median: 7.19 vs MEX:EL: 3208.82

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

The historical data trend for The Estee Lauder's Return-on-Tangible-Equity 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-Equity

87.39

125.92

106.02

Negative Tangible Equity

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-Equity																Negative Tangible Equity	Negative Tangible Equity	Negative Tangible Equity	1,306.77	172.59

Competitive Comparison

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

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

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

The Estee Lauder Return-on-Tangible-Equity Calculation

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

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(A: Jun. 2022 )		(A: Jun. 2021 )		(A: Jun. 2022 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets )	/ count )
		(A: Jun. 2022 )		(A: Jun. 2021 )		(A: Jun. 2022 )
	=	48082.02	/	( (-13018.524	+	-7222.362 )	/ 2 )
	=	48082.02	/	-10120.443
	=	Negative Tangible Equity %

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

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(Q: Mar. 2023 )		(Q: Dec. 2022 )		(Q: Mar. 2023 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets)	/ count )
		(Q: Mar. 2023 )		(Q: Dec. 2022 )		(Q: Mar. 2023 )
	=	11247.6	/	( (6472.672	+	6561.1)	/ 2 )
	=	11247.6	/	6516.886
	=	172.59 %

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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. Return-on-Tangible-Equity is displayed in the 10-year financial page.

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

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.

Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.

The Estee Lauder Return-on-Tangible-Equity 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 » Return-on-Tangible-Equity

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.