Coty Inc (COTY)

Cash ratio

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Cash and cash equivalents US$ in thousands 257,100 243,500 249,600 283,600 320,600 260,200 450,000 280,000 246,900 245,000 280,800 215,700 233,300 668,600 523,400 376,900 253,500 315,300 549,100 535,700
Short-term investments US$ in thousands — — — — — — — — 0 — — — 7,600 — — — 1,276,000 1,266,000 — —
Total current liabilities US$ in thousands 2,538,300 2,359,600 2,746,200 2,637,600 2,601,800 2,476,200 2,851,000 2,828,100 2,736,800 2,757,300 2,915,600 2,610,600 2,565,600 3,196,200 2,902,100 3,071,800 2,415,400 2,565,900 2,983,100 3,678,000
Cash ratio 0.10 0.10 0.09 0.11 0.12 0.11 0.16 0.10 0.09 0.09 0.10 0.08 0.09 0.21 0.18 0.12 0.63 0.62 0.18 0.15

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. has exhibited notable fluctuations over the period under review. Starting at 0.15 as of September 30, 2020, the ratio experienced incremental increases towards the end of 2020, reaching approximately 0.18 by December 31, 2020. A significant uptick occurred in the first quarter of 2021, with the ratio rising sharply to 0.62, indicating a substantial increase in the company's ability to cover current liabilities with its cash holdings.

This elevated level persisted into the second quarter of 2021, with the ratio maintaining around 0.63, suggesting a period of enhanced liquidity or liquidity management. However, from September 2021 onwards, the ratio declined significantly, falling to approximately 0.12 by September 30, 2021, and remaining relatively low through 2022—hovering around 0.08 to 0.10 in the subsequent quarters. The lower ratios imply that the company’s cash holdings constituted a smaller fraction of its current liabilities, reflecting a tighter liquidity position during this period.

Between late 2022 and mid-2024, the cash ratio was relatively stable, generally oscillating between 0.09 and 0.16, indicating a modest liquidity buffer maintained by the company. The ratio’s slight upticks towards the end of 2023 and into the first half of 2024 (peaking at 0.16 in December 2023) denote slight improvements in liquidity.

Overall, the cash ratio of Coty Inc. has demonstrated considerable volatility, with periods corresponding to both substantial liquidity cushions and tighter liquidity positions. The most pronounced fluctuation was observed in early 2021, while subsequent years reflected a relatively conservative approach to cash holdings relative to current liabilities. The general trend suggests that Coty Inc. has maintained a cautious liquidity stance, with the cash ratio rarely exceeding 0.20 after the initial surge, thereby indicating limited availability of cash to immediately cover current liabilities during most periods.