Coty Inc (COTY)
Quick ratio
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 300,800 | 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 | 308,300 | 1,278,500 | 288,800 | 350,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 7,600 | — | — | — | 1,276,000 | 1,266,000 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 463,000 | 479,900 | 500,200 | 534,900 | 379,300 | 400,800 | 433,800 | 483,000 | 450,100 | 479,200 | 506,800 | 517,800 | 526,700 | 398,100 | 531,700 | 521,700 | 493,500 | 844,200 | 1,110,000 | 1,036,600 |
| Total current liabilities | US$ in thousands | 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 | 3,585,700 | 3,085,800 | 3,513,600 | 3,237,400 |
| Quick ratio | 0.29 | 0.30 | 0.33 | 0.29 | 0.23 | 0.23 | 0.25 | 0.27 | 0.27 | 0.36 | 0.35 | 0.29 | 0.85 | 0.77 | 0.36 | 0.29 | 0.22 | 0.69 | 0.40 | 0.43 |
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 over the past several quarters has shown fluctuations within a range from 0.22 to 0.85. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities without relying on the sale of inventory.
Coty Inc's quick ratio has generally stayed below 1, with the lowest value of 0.22 observed in March 2020 and the highest value of 0.85 in December 2022. The company's quick ratio has been below 0.5 in several quarters, indicating a potential liquidity risk. However, there was a significant improvement in the quick ratio in March 2021 and December 2021, reaching 0.77 and 0.69, respectively.
Overall, the quick ratio of Coty Inc has been relatively low, suggesting a potential weakness in the company's ability to cover its short-term liabilities with its liquid assets. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its financial obligations as they come due.
Peer comparison
Jun 30, 2024