Estee Lauder Companies, Inc. (T — Earnings Quality Grade F
EL · Consumer Defensive
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 39 days, change -1 days YoY
AR growth -11.4% vs revenue growth -8.2%
Revenue -8.2%, CFFO -46.1%. Cash follows revenue
Expense Quality
Inventory -4.6% vs COGS -15.7%. Normal
CapEx growth -34.5% vs revenue -8.2%. Normal
SG&A/Gross Profit = 89.2%, exceeds 70%
Gross margin 74.0%, change +2.3pp. Stable
Cash Flow Quality
CFFO/NI = -1.12. Below 1.0
FCF $0.7B, FCF/NI = -0.59
Accruals ratio = -12.1%. Low accruals
Cash $2.9B covers only 31% of debt $9.5B
Balance Sheet Health
Goodwill+Intangibles $5.9B = 152% of equity. Over 50%
Debt/EBITDA = 64.8x (>4x). Financial stress
Other assets grew 23.6% vs revenue -8.2%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -20% YoY. Normal
Manipulation Score
M-Score = -3.22 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10