Coty Inc (COTY)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 64.37% | 67.17% | 65.82% | 67.26% | 61.28% |
| Operating profit margin | 8.93% | 10.29% | 4.71% | -1.18% | -27.79% |
| Pretax margin | 3.01% | 13.06% | 8.29% | -9.07% | -31.11% |
| Net profit margin | 1.46% | 9.62% | 5.07% | -4.89% | -22.63% |
Coty Inc's profitability ratios exhibit variability over the past five years. The gross profit margin has generally been stable, ranging between 61.28% and 67.26%, with a slight decrease in the most recent year to 64.37%. This indicates the company's ability to efficiently produce goods after accounting for the cost of sales.
The operating profit margin showed a fluctuating trend, with significant improvements from negative figures in 2020 and 2021 to positive values in subsequent years. However, a slight decrease was observed in the latest year to 8.93%. This margin reflects the company's operational efficiency in generating profits from its core business activities.
The pretax margin experienced significant positive growth from negative figures in 2020 and 2021 to 3.01% in the most recent year. This improvement signifies the company's ability to control operating costs and generate profits before accounting for taxes.
The net profit margin also displayed fluctuations, with a negative performance in 2020 and 2021, followed by a recovery in subsequent years. However, there was a decrease in the latest year to 1.46%, indicating the company's overall profitability after all expenses have been deducted, including taxes.
In conclusion, while Coty Inc has shown improvements in its profitability ratios over the years, fluctuations in margins highlight the importance of monitoring the company's operational efficiency and cost management strategies to sustain profitability in the long term.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.52% | 4.29% | 1.99% | -0.35% | -7.39% |
| Return on assets (ROA) | 0.74% | 4.01% | 2.14% | -1.47% | -6.02% |
| Return on total capital | 7.13% | 11.90% | 8.80% | -1.71% | -10.56% |
| Return on equity (ROE) | 2.34% | 13.33% | 8.23% | -7.04% | -33.51% |
Coty Inc's profitability ratios show mixed performance over the last five years.
1. Operating return on assets (Operating ROA) has shown a positive trend, increasing from 4.29% in 2023 to 4.52% in 2024. This indicates that the company has been able to generate operating income more efficiently relative to its total assets.
2. Return on assets (ROA) has fluctuated, with a significant decline in 2021 followed by a slight recovery in 2022 and 2023. It further improved to 0.74% in 2024, indicating a positive sign of profitability relative to the total assets.
3. Return on total capital has also shown volatility, with a sharp decline in 2021, followed by improvements in the subsequent years. The ratio reached 7.13% in 2024, suggesting that the company is generating decent returns from the total capital employed.
4. Return on equity (ROE) has been the most volatile, with fluctuations and negative figures in 2021 and 2020. There was a significant improvement in 2023, with an ROE of 13.33%, indicating a notable increase in profitability relative to shareholders' equity. However, it dropped to 2.34% in 2024, signaling a decline in returns to equity holders.
Overall, while there have been improvements in some profitability ratios, the varying trends across the different metrics suggest that Coty Inc's profitability performance has been inconsistent in recent years. Monitoring these ratios closely will be essential to track the company's ability to effectively generate profits from its assets, capital, and equity.