Coty Inc (COTY)

Current 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
Total current assets US$ in thousands 1,953,300 1,930,100 1,952,500 2,233,700 1,963,500 1,985,600 2,421,600 2,243,500 2,051,700 1,914,500 1,906,300 1,830,000 1,681,900 2,204,200 2,178,400 2,060,200 1,783,100 1,818,200 2,217,500 6,976,200
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
Current ratio 0.77 0.82 0.71 0.85 0.75 0.80 0.85 0.79 0.75 0.69 0.65 0.70 0.66 0.69 0.75 0.67 0.74 0.71 0.74 1.90

June 30, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,953,300K ÷ $2,538,300K
= 0.77

The analysis of Coty Inc.'s current ratio over the specified period reveals significant fluctuations in liquidity positioning. The current ratio experienced a notable decline from 1.90 as of September 30, 2020, to a low of 0.65 at the end of December 2022. This downward trend indicates a diminishing ability to cover short-term liabilities with short-term assets during that period.

From early 2021 onward, the ratio generally remained below 1. suggesting a potential liquidity concern, as values below 1. imply that current liabilities surpass current assets. Despite the overall decline, there was a gradual recovery starting around the end of 2022. Notably, the ratio increased to 0.85 by December 2023, reflecting an improvement in short-term financial stability.

In the recent periods of 2024 and 2025, the ratio has ranged between approximately 0.71 and 0.82, indicating a relatively steady state with some variability but generally maintaining a position below 1. The peak at 0.85 in September 2024 and March 2025 suggests periods of improved liquidity, though it remains below the benchmark of 1. for full short-term solvency.

Overall, the trend indicates that Coty Inc. has experienced periods of liquidity pressure in recent years but has demonstrated some capacity to improve its short-term financial position in the most recent reporting periods. The fluctuations suggest ongoing management challenges in maintaining optimal liquidity levels, and the current ratios imply a cautious outlook regarding immediate financial resilience.