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The Estee Lauder (MEX:EL) Asset Turnover : 0.17 (As of Mar. 2024)


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What is The Estee Lauder Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. The Estee Lauder's Revenue for the three months ended in Mar. 2024 was MXN65,389 Mil. The Estee Lauder's Total Assets for the quarter that ended in Mar. 2024 was MXN385,973 Mil. Therefore, The Estee Lauder's Asset Turnover for the quarter that ended in Mar. 2024 was 0.17.

Asset Turnover is linked to ROE % through Du Pont Formula. The Estee Lauder's annualized ROE % for the quarter that ended in Mar. 2024 was 22.79%. It is also linked to ROA % through Du Pont Formula. The Estee Lauder's annualized ROA % for the quarter that ended in Mar. 2024 was 5.68%.


The Estee Lauder Asset Turnover Historical Data

The historical data trend for The Estee Lauder's Asset Turnover 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 Asset Turnover Chart

The Estee Lauder Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.14 1.00 0.76 0.83 0.66

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
Asset Turnover 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 0.17 0.15 0.15 0.18 0.17

Competitive Comparison of The Estee Lauder's Asset Turnover

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

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

* The bar in red indicates where The Estee Lauder's Asset Turnover falls into.



The Estee Lauder Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

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

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Jun. 2023 )/( (Total Assets (A: Jun. 2022 )+Total Assets (A: Jun. 2023 ))/ count )
=272759.449/( (420667.38+401424.419)/ 2 )
=272759.449/411045.8995
=0.66

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

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Mar. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Mar. 2024 ))/ count )
=65389.245/( (395211.416+376734.989)/ 2 )
=65389.245/385973.2025
=0.17

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


The Estee Lauder  (MEX:EL) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

The Estee Lauder's annulized ROE % for the quarter that ended in Mar. 2024 is

ROE %**(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=21907.056/96142.897
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(21907.056 / 261556.98)*(261556.98 / 385973.2025)*(385973.2025/ 96142.897)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.38 %*0.6777*4.0146
=ROA %*Equity Multiplier
=5.68 %*4.0146
=22.79 %

Note: The Net Income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data.

* 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 ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

The Estee Lauder's annulized ROA % for the quarter that ended in Mar. 2024 is

ROA %(Q: Mar. 2024 )
=Net Income/Total Assets
=21907.056/385973.2025
=(Net Income / Revenue)*(Revenue / Total Assets)
=(21907.056 / 261556.98)*(261556.98 / 385973.2025)
=Net Margin %*Asset Turnover
=8.38 %*0.6777
=5.68 %

Note: The Net Income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data.

* 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.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


The Estee Lauder Asset Turnover 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.