Coty Inc (COTY)

Operating return on assets (Operating ROA)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Operating income	US$ in thousands	546,700	543,700	240,900	-48,600	-1,236,500
Total assets	US$ in thousands	12,082,500	12,661,600	12,116,100	13,691,400	16,728,800
Operating ROA		4.52%	4.29%	1.99%	-0.35%	-7.39%

June 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $546,700K ÷ $12,082,500K
= 4.52%

The operating return on assets (operating ROA) for Coty Inc has shown improvement over the last five years. In the latest fiscal year, as of June 30, 2024, the operating ROA stood at 4.52%, reflecting the company's ability to generate operating profits from its assets. This represents an increase from 4.29% in the previous year and a significant improvement from the negative figures reported in the preceding years.

The positive trend in operating ROA indicates that Coty Inc has been more efficient in utilizing its assets to generate operating income in recent years. The uptrend suggests that the company may have implemented strategic measures to enhance operational efficiency and profitability.

It is worth noting that the operating ROA was in negative territory in the fiscal years ending June 30, 2021, and June 30, 2020, indicating that the company faced challenges in generating operating profits relative to its asset base during those periods. However, the subsequent turnaround and consistent improvement in operating ROA demonstrate a positive trajectory for Coty Inc's operational performance.

Overall, the improving trend in operating ROA reflects positive developments in the company's operational efficiency and profitability, signaling better utilization of assets to generate operating income.