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