100s of titles, one news app for just $10 a month.
Dive Deeper:
Krispy Kreme's Return On Capital Employed Overview
According to Benzinga Pro, during Q1, Krispy Kreme (NASDAQ:DNUT) earned $6.46 million, a 50.78% increase from the preceding quarter. Krispy…
Gartner's Return On Capital Employed Overview
Pulled from Benzinga Pro data, Gartner (NYSE:IT) posted Q1 earnings of $172.51 million, an increase from Q4 of 17.6%. Sales…
Jacobs Engineering Group's Return On Capital Employed Overview
According to Benzinga Pro data Jacobs Engineering Group (NYSE:J) posted a 28.67% decrease in earnings from Q1. Sales, however, increased…
Kaman's Return On Capital Employed Overview
Pulled from Benzinga Pro data, Kaman (NYSE:KAMN) posted Q1 earnings of $4.03 million, an increase from Q4 of 56.07%. Sales…
One subscription that gives you access to news from hundreds of sites
Resideo Technologies's Return On Capital Employed Overview
According to Benzinga Pro, during Q1, Resideo Technologies (NYSE:REZI) earned $87.00 million, a 29.85% increase from the preceding quarter. Resideo…
Howmet Aerospace's Return On Capital Employed Overview
According to Benzinga Pro, during Q1, Howmet Aerospace (NYSE:HWM) earned $131.00 million, a 70.13% increase from the preceding quarter. Howmet…
Get all your news in one place
Latest Business news:
OECD chief sees global digital tax deal pushed back to 2024
The Organisation for Economic Cooperation and Development (OECD) on Tuesday acknowledged for the first time that a global digital tax…
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
Shanghai: world's biggest port is returning to normal, but supply chains will get worse before they get better
Shanghai is slowly emerging from a gruelling COVID lockdown that has all but immobilised the city since March. Although Shanghai’s…
Hotels want to use NFTs to screw over travelers
Adding crypto to the travel industry will only make things less accessible and worse for the planet.
Snapchat owner leads latest round of tech-stock plunge
Social media stocks shed about $147bn (€137bn) in market value yesterday after Snap’s profit warning, adding to woes for the…
'Life is too short' - couple retires on cruise ships to avoid cost of land living
When Angelyn Burk, a recently retired accountant, decided to crunch some numbers one evening last year, she made a stunning…
From analysis to good news, read the world’s best news in one place
China's Gen Z Has the Power to Make or Break Western Brands
Young, nationalistic shoppers are derailing big bets on China
Countries agree to overhaul WHO funding model
Geneva (AFP) - The World Health Organization's member states agreed Tuesday to overhaul how they fund the UN health agency,…

The Estee Lauder Cos's Return On Capital Employed Overview

By Benzinga Insights

According to Benzinga Pro, during Q3, The Estee Lauder Cos (NYSE:EL) earned $573.00 million, a 47.43% increase from the preceding quarter. The Estee Lauder Cos's sales decreased to $4.25 billion, a 23.38% change since Q2. In Q2, The Estee Lauder Cos earned $1.09 billion, and total sales reached $5.54 billion.

Why Is ROCE Significant?

Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q3, The Estee Lauder Cos posted an ROCE of 0.08%.

Keep in mind, while ROCE is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

ROCE is a powerful metric for comparing the effectiveness of capital allocation for similar companies. A relatively high ROCE shows The Estee Lauder Cos is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will generally lead to higher returns and, ultimately, earnings per share (EPS) growth.

For The Estee Lauder Cos, the positive return on capital employed ratio of 0.08% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Analyst Predictions

The Estee Lauder Cos reported Q3 earnings per share at $1.9/share, which beat analyst predictions of $1.67/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.

Dive Deeper:
Krispy Kreme's Return On Capital Employed Overview
According to Benzinga Pro, during Q1, Krispy Kreme (NASDAQ:DNUT) earned $6.46 million, a 50.78% increase from the preceding quarter. Krispy…
Gartner's Return On Capital Employed Overview
Pulled from Benzinga Pro data, Gartner (NYSE:IT) posted Q1 earnings of $172.51 million, an increase from Q4 of 17.6%. Sales…
Jacobs Engineering Group's Return On Capital Employed Overview
According to Benzinga Pro data Jacobs Engineering Group (NYSE:J) posted a 28.67% decrease in earnings from Q1. Sales, however, increased…
Kaman's Return On Capital Employed Overview
Pulled from Benzinga Pro data, Kaman (NYSE:KAMN) posted Q1 earnings of $4.03 million, an increase from Q4 of 56.07%. Sales…
One subscription that gives you access to news from hundreds of sites
Resideo Technologies's Return On Capital Employed Overview
According to Benzinga Pro, during Q1, Resideo Technologies (NYSE:REZI) earned $87.00 million, a 29.85% increase from the preceding quarter. Resideo…
Howmet Aerospace's Return On Capital Employed Overview
According to Benzinga Pro, during Q1, Howmet Aerospace (NYSE:HWM) earned $131.00 million, a 70.13% increase from the preceding quarter. Howmet…
Get all your news in one place