Who Relies More On Debt: L’Oreal Or Estee Lauder?

by Trefis Team
+11.88%
Upside
84.70
Market
94.76
Trefis
LRLCY
L'Oreal
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debt asset equity

 

*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.

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
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