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The Estee Lauder (MEX:EL) Interest Coverage : 5.84 (As of Mar. 2024)


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What is The Estee Lauder Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. The Estee Lauder's Operating Income for the three months ended in Mar. 2024 was MXN9,111 Mil. The Estee Lauder's Interest Expense for the three months ended in Mar. 2024 was MXN-1,560 Mil. The Estee Lauder's interest coverage for the quarter that ended in Mar. 2024 was 5.84. The higher the ratio, the stronger the company's financial strength is.

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

MEX:EL' s Interest Coverage Range Over the Past 10 Years
Min: 3.25   Med: 19.22   Max: 30.72
Current: 3.25


MEX:EL's Interest Coverage is ranked worse than
71.35% of 1396 companies
in the Consumer Packaged Goods industry
Industry Median: 8.675 vs MEX:EL: 3.25

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


The Estee Lauder Interest Coverage Historical Data

The historical data trend for The Estee Lauder's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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The Estee Lauder Interest Coverage Chart

The Estee Lauder Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.69 13.07 17.40 21.22 6.95

The Estee Lauder Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Interest Coverage Get a 7-Day Free Trial 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 5.36 0.26 1.04 5.93 5.84

Competitive Comparison of The Estee Lauder's Interest Coverage

For the Household & Personal Products subindustry, The Estee Lauder's Interest Coverage, along with its competitors' market caps and Interest Coverage 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's Interest Coverage Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where The Estee Lauder's Interest Coverage falls into.



The Estee Lauder Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Estee Lauder's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, The Estee Lauder's Interest Expense was MXN-4,372 Mil. Its Operating Income was MXN30,362 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN151,123 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2023 )/Interest Expense (A: Jun. 2023 )
=-1*30361.847/-4371.695
=6.95

The Estee Lauder's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, The Estee Lauder's Interest Expense was MXN-1,560 Mil. Its Operating Income was MXN9,111 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN148,902 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*9111.344/-1560.048
=5.84

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


The Estee Lauder  (MEX:EL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


The Estee Lauder Interest Coverage Related Terms

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


The Estee Lauder (MEX:EL) Business Description

Address
767 Fifth Avenue, New York, NY, USA, 10153
Estee Lauder is a leader in the global prestige beauty market, participating across skin care (56% of 2022 sales), makeup (26%), fragrance (14%), and hair care (4%) categories, with top-selling brands such as Estee Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins. The firm operates in more than 150 countries, generating 26% of revenue from the Americas, 43% from Europe, the Middle East and Africa (including travel retail), and 31% from Asia Pacific. Estee Lauder sells its products through department stores, travel retail, specialty multibrand beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.