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

+39.80%
Upside
67.64
Market
94.56
Trefis
LRLCY: L'Oreal logo
LRLCY
L'Oreal

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.
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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