Coty Inc (COTY)

Quick ratio

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Cash 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
Receivables US$ in thousands 526,400 481,600 612,500 434,800 348,000
Total current liabilities US$ in thousands 2,538,300 2,601,800 2,736,800 2,565,600 2,415,400
Quick ratio 0.31 0.30 0.31 0.26 0.78

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($257,100K + $—K + $526,400K) ÷ $2,538,300K
= 0.31

The quick ratio of Coty Inc. has exhibited notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the quick ratio was 0.78, indicating that the company's liquid assets were 78% of its current liabilities, reflecting a relatively moderate level of short-term liquidity.

By June 30, 2022, the quick ratio experienced a significant decline to 0.26. This substantial decrease suggests a deterioration in Coty’s ability to cover its current liabilities with its most liquid assets, possibly due to a reduction in liquid assets or an increase in current liabilities. Such a low ratio indicates relatively tight liquidity conditions during this period.

After this decline, the quick ratio modestly increased to 0.31 by June 30, 2023. This slight improvement suggests a marginal strengthening of Coty's liquid asset position relative to its short-term obligations, although the ratio remains below 1.0, which generally indicates that the company may face liquidity constraints if faced with unexpected short-term liabilities.

The ratio remained relatively stable at 0.30 in June 30, 2024, and continued at approximately the same level of 0.31 through June 30, 2025. This stability implies that the company's liquidity position has remained consistent in recent years but continues to reflect challenges in fully covering current liabilities with liquid assets.

Overall, the trend in Coty Inc.'s quick ratio points towards persistently limited short-term liquidity that has deteriorated markedly by mid-2022 and has not substantially improved since then. The ratios consistently remain below 1.0, signaling a potential need for improvement in liquidity management or capital structure adjustments to enhance the company's capacity to meet its immediate obligations.