Coty Inc (COTY)

Cash ratio

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Cash and cash equivalents US$ in thousands 257,100 300,800 246,900 233,300 253,500
Short-term investments US$ in thousands — — 0 7,600 1,276,000
Total current liabilities US$ in thousands 2,538,300 2,601,800 2,736,800 2,565,600 2,415,400
Cash ratio 0.10 0.12 0.09 0.09 0.63

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($257,100K + $—K) ÷ $2,538,300K
= 0.10

The cash ratio of Coty Inc. over the specified periods demonstrates significant fluctuations, indicative of varying liquidity positions. As of June 30, 2021, the cash ratio stood at 0.63, suggesting that Coty had a relatively robust liquidity position, with sufficient cash and cash equivalents to cover approximately 63% of its current liabilities. This high level of liquidity could be attributed to the company's conservative cash management or a temporary accumulation of cash reserves.

Moving to June 30, 2022, the cash ratio experienced a substantial decline to 0.09, reflecting a notable deterioration in short-term liquidity. This indicates that cash and cash equivalents covered only 9% of current liabilities, potentially raising concerns about the company's immediate liquidity buffer and its ability to meet short-term obligations without additional liquid resources.

The ratio remained stagnant at 0.09 through June 30, 2023, implying continued challenges in maintaining sufficient cash holdings relative to current liabilities. This stability at a low level suggests that the company's liquidity position did not improve during this period and may point to ongoing operational or financial pressures impacting liquidity management.

By June 30, 2024, the cash ratio experienced a modest increase to 0.12, signaling a slight enhancement in the company's liquidity position. Despite this improvement, the ratio remains relatively low, continuing to reflect limited cash resources relative to current liabilities.

Finally, as of June 30, 2025, the cash ratio slightly decreased back to 0.10, indicating that the liquidity position has remained stable at a low level in recent years. Overall, the trend from 2021 through 2025 suggests that Coty Inc. has been operating with a limited cash buffer relative to its short-term obligations, which may impact its liquidity risk profile.