Coty Inc (COTY)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 300,800 | 246,900 | 233,300 | 253,500 | 308,300 |
| Short-term investments | US$ in thousands | — | — | 7,600 | 1,276,000 | — |
| Receivables | US$ in thousands | 463,000 | 379,300 | 450,100 | 526,700 | 493,500 |
| Total current liabilities | US$ in thousands | 2,601,800 | 2,736,800 | 2,565,600 | 2,415,400 | 3,585,700 |
| Quick ratio | 0.29 | 0.23 | 0.27 | 0.85 | 0.22 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($300,800K
+ $—K
+ $463,000K)
÷ $2,601,800K
= 0.29
The quick ratio of Coty Inc has fluctuated over the past five years. In the most recent period, as of June 30, 2024, the quick ratio stands at 0.29, indicating that the company may face challenges in meeting its short-term obligations with its most liquid assets. This suggests a potential liquidity risk for the company.
Comparing this to the previous years, we can see a downward trend from 2021 to 2023, where the quick ratio ranged from 0.23 to 0.27, signifying a deterioration in the company's ability to cover its short-term liabilities with its quick assets during those years.
However, in 2021, the quick ratio spiked to 0.85, which could indicate a temporary improvement in liquidity, potentially resulting from better management of current assets and liabilities during that period.
Overall, the downward trend in the quick ratio from 2021 to 2024 suggests that the company's liquidity position has weakened over time, indicating a potential need for Coty Inc to closely monitor and manage its short-term liquidity in order to meet its financial obligations efficiently.
Peer comparison
Jun 30, 2024