Who Relies More On Debt: L’Oreal Or Estee Lauder?
*L’Oreal’s figures are year ending 2015 figures as the company releases its financial statements only twice a year.
- The comparison reveals that Estee Lauder is significantly more reliant on Debt for generating assets and financing growth than L’Oreal.
- This makes Estee Lauder’s earnings much more susceptible to volatility on account of interest expense.
- L’Oreal is financing almost all of its growth through equity implying that its earnings are reflective of its core business performance.
Have more questions on L’Oreal? See the links below.
- What Is L’Oreal’s Fundamental Value On The Basis Of Its Forecasted 2015 Results?
- How Has L’Oreal’s Revenue And EBITDA Composition Changed Over 2012-2016E?
- L’Oreal: Year 2015 In Review
- What Is L’Oreal’s Fundamental Value Based On 2016 Estimated Numbers?
- L’Oreal’s Q1 2016 Earnings Results
- How Did The Top Two Beauty Companies Perform In The Fragrance Segment Over The Last Five Years?
- How Can L’Oreal’s Digital Investments Help The Company?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for L’Oreal