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The Estee Lauder (MEX:EL) Sloan Ratio % : 8.65% (As of Mar. 2024)


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What is The Estee Lauder Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

The Estee Lauder's Sloan Ratio for the quarter that ended in Mar. 2024 was 8.65%.

As of Mar. 2024, The Estee Lauder has a Sloan Ratio of 8.65%, indicating the company is in the safe zone and there is no funny business with accruals.


The Estee Lauder Sloan Ratio % Historical Data

The historical data trend for The Estee Lauder's Sloan Ratio % 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 Sloan Ratio % Chart

The Estee Lauder Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -9.16 0.57 5.02 1.41 10.64

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
Sloan Ratio % 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 -0.39 11.09 8.65 8.96 8.65

Competitive Comparison of The Estee Lauder's Sloan Ratio %

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

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

* The bar in red indicates where The Estee Lauder's Sloan Ratio % falls into.



The Estee Lauder Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

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

Sloan Ratio=(Net Income (A: Jun. 2023 )-Cash Flow from Operations (A: Jun. 2023 )
-Cash Flow from Investing (A: Jun. 2023 ))/Total Assets (A: Jun. 2023 )
=(17246.763-29676.091
--55151.926)/401424.419
=10.64%

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

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2024 )
=(10763.941-36826.599
--58657.052)/376734.989
=8.65%

The Estee Lauder's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -565.749 (Jun. 2023 ) + 539.986 (Sep. 2023 ) + 5312.94 (Dec. 2023 ) + 5476.764 (Mar. 2024 ) = MXN10,764 Mil.
The Estee Lauder's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 12240.745 (Jun. 2023 ) + -7106.91 (Sep. 2023 ) + 22830.364 (Dec. 2023 ) + 8862.4 (Mar. 2024 ) = MXN36,827 Mil.
The Estee Lauder's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -46117.091 (Jun. 2023 ) + -5138.575 (Sep. 2023 ) + -4447.253 (Dec. 2023 ) + -2954.133 (Mar. 2024 ) = MXN-58,657 Mil.

* 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 Estee Lauder  (MEX:EL) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Mar. 2024, The Estee Lauder has a Sloan Ratio of 8.65%, indicating the company is in the safe zone and there is no funny business with accruals.


The Estee Lauder Sloan Ratio % Related Terms

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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.