GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » The Estee Lauder Companies Inc (MEX:EL) » Definitions » Return-on-Tangible-Equity

The Estee Lauder (MEX:EL) Return-on-Tangible-Equity : Negative Tangible Equity% (As of Mar. 2024)


View and export this data going back to 2014. Start your Free Trial

What is The Estee Lauder Return-on-Tangible-Equity?

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. 2024 was MXN21,907 Mil. The Estee Lauder's average shareholder tangible equity for the quarter that ended in Mar. 2024 was MXN-37,667 Mil. Therefore, The Estee Lauder's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was Negative Tangible Equity%.

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: 79.53   Max: 127.45
Current: Negative Tangible Equity

During the past 13 years, The Estee Lauder's highest Return-on-Tangible-Equity was 127.45%. The lowest was 43.77%. And the median was 79.53%.

MEX:EL's Return-on-Tangible-Equity is ranked better than
99.94% of 1801 companies
in the Consumer Packaged Goods industry
Industry Median: 7.79 vs MEX:EL: Negative Tangible Equity

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 Return-on-Tangible-Equity Chart

The Estee Lauder Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 125.92 106.02 Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

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
Return-on-Tangible-Equity 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 172.59 - Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Competitive Comparison of The Estee Lauder's Return-on-Tangible-Equity

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.


The Estee Lauder's Return-on-Tangible-Equity Distribution in the Consumer Packaged Goods Industry

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 into.



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. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jun. 2023 )  (A: Jun. 2022 )(A: Jun. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jun. 2023 )  (A: Jun. 2022 )(A: Jun. 2023 )
=17246.763/( (-7222.362+-42911.181 )/ 2 )
=17246.763/-25066.7715
=Negative Tangible Equity %

The Estee Lauder's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=21907.056/( (-39702.766+-35632.159)/ 2 )
=21907.056/-37667.4625
=Negative Tangible Equity %

* 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-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. 2024) 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

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