Coty Inc (COTY)

Cash ratio

Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Cash and cash equivalents US$ in thousands 300,800 246,900 233,300 253,500 308,300
Short-term investments US$ in thousands 7,600 1,276,000
Total current liabilities US$ in thousands 2,601,800 2,736,800 2,565,600 2,415,400 3,585,700
Cash ratio 0.12 0.09 0.09 0.63 0.09

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($300,800K + $—K) ÷ $2,601,800K
= 0.12

The cash ratio of Coty Inc has fluctuated over the past five years, ranging from 0.09 to 0.63. The ratio indicates the company's ability to cover its short-term liabilities with cash and cash equivalents.

In 2020 and 2023, the ratio was relatively low at 0.09, suggesting that Coty may have had limited cash resources available to meet its short-term obligations. However, in 2021, there was a significant increase in the cash ratio to 0.63, indicating a stronger liquidity position compared to the previous years.

The ratio decreased to 0.09 in 2022 and 2023, indicating a return to a lower liquidity level. This fluctuation could be attributed to changes in the company's cash management practices, operating cash flows, or short-term debt levels.

Overall, the cash ratio of Coty Inc has shown variability over the years, highlighting the importance of monitoring liquidity levels to ensure the company can meet its short-term financial obligations.


Peer comparison

Jun 30, 2024