Coty Inc (COTY)

Quick 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 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 — —
Receivables US$ in thousands 526,400 572,900 594,300 703,500 481,600 -406,700 500,200 -467,100 612,500 400,800 433,800 483,000 434,800 479,200 506,800 678,500 348,000 398,100 531,700 521,700
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
Quick ratio 0.31 0.35 0.31 0.37 0.31 -0.06 0.33 -0.07 0.31 0.23 0.25 0.27 0.26 0.36 0.35 0.34 0.78 0.77 0.36 0.29

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 analysis of Coty Inc.'s quick ratio over the given period reveals significant fluctuations, indicating variability in the company's liquidity position. The quick ratio, which measures the ability to meet short-term obligations using liquid assets excluding inventories, demonstrates periods of improvement and decline.

From September 30, 2020, to June 30, 2021, the ratio experienced a marked increase, climbing from 0.29 to 0.78. This suggests an enhancement in short-term liquidity, potentially attributable to improved cash holdings or reduction in current liabilities. However, post-June 2021, the ratio declined sharply to 0.34 by September 30, 2021, and remained relatively stable around 0.25 to 0.36 through the subsequent periods, reflecting moderate liquidity levels.

Notably, the ratios consistently remained below 1 throughout most of the period, which signifies that liquid assets were insufficient to cover current liabilities fully, although the ratios remained positive until the latest data. The ratio experienced a transient negative reading of -0.07 on September 30, 2023, and -0.06 on March 31, 2024, indicating periods where liquid assets were insufficient to meet short-term commitments, possibly due to extraordinary financial restructuring or accounting adjustments.

In the most recent data, the ratio rebounded to around 0.31–0.37, suggesting some stabilization in liquidity, though it still lingers below parity. Throughout the period analyzed, the trend points toward a generally constrained liquidity position, with fluctuation reflecting operational or financial strategy shifts, cash flow variations, or changes in current liabilities and liquid asset management.

Overall, the observed trend in Coty Inc.'s quick ratio underscores ongoing liquidity challenges, with moments of improvement but an overarching pattern of limited liquid assets relative to short-term obligations. This profile warrants attentive liquidity management and monitoring of cash flow health to ensure the ability to meet immediate financial commitments.