How Does Estee Lauder’s Financial State Currently Look?

by Trefis Team
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Estee Lauder
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  • From the above analysis we can conclude that Estee Lauder is in a sound financial state.
  • Estee Lauder’s cash asset ratio is almost 0.23, suggesting that the company doesn’t have enough cash to pay off most of its near term obligations.  However the value of its liquid assets (i.e., those that can be quickly converted to cash) exceeds the value of its short-term liabilities, suggesting that the company has enough liquid assets to pay off its short term liabilities
  • The solvency analysis shows Estee Lauder is reliant on Debt to a moderate extent at 50% of Equity. Around 20% of its assets are supported by debt.
  • The interest coverage ratio of 21.3 implies that Estee Lauder can easily funds the current interest on its debt out of operating cash flow.  This suggests that Estee Lauder’s short-term financial health is in excellent shape currently.

Have more questions about Estee Lauder? See the links below.

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 Estee Lauder

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