Coty Inc (COTY)

Operating return on assets (Operating ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Operating income	US$ in thousands	530,600	546,700	543,700	690,400	197,700
Total assets	US$ in thousands	11,907,700	12,082,500	12,661,600	12,116,100	13,691,400
Operating ROA		4.46%	4.52%	4.29%	5.70%	1.44%

June 30, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $530,600K ÷ $11,907,700K
= 4.46%

The analysis of Coty Inc’s operating return on assets (Operating ROA) over the period from June 30, 2021, to June 30, 2025, reveals several important trends and considerations.

Initially, on June 30, 2021, Coty’s Operating ROA was relatively low at 1.44%. This figure indicates that in that fiscal year, the company's operating income generated a modest return relative to its total assets, suggesting either operational challenges or a period of transition, typical for companies restructuring or facing market headwinds.

By June 30, 2022, there was a significant increase in Operating ROA to 5.70%. This jump reflects a noteworthy improvement in operational efficiency, profitability, or both, possibly driven by strategic initiatives, product line improvements, or market expansion efforts. Such an increase signifies a positive development in how effectively Coty’s assets are being utilized to generate operating income.

Between June 30, 2022, and June 30, 2023, the Operating ROA declined slightly to 4.29%. Although this represents a minor decrease from the previous year’s peak, the ratio remains substantially higher than the 2021 level. The decline could indicate transient operational challenges, increased asset base, or modifications in operating margins, warranting further analysis into underlying operational factors.

In the subsequent period, from June 30, 2023, to June 30, 2024, the Operating ROA experienced a modest increase to 4.52%. This suggests a stabilization or slight repositioning of operational efficiency, possibly returning to or maintaining recent levels of performance following the previous decline.

Finally, from June 30, 2024, to June 30, 2025, the ratio slightly declined to 4.46%. Overall, the five-year trend indicates that while Coty experienced a substantial improvement in operating profitability relative to assets during 2022, the subsequent years reflect a period of relative stabilization with margins slightly below the 2022 peak. The data suggests that Coty has managed to sustain a mid-single-digit Operating ROA, reflecting a moderate level of operational efficiency in generating income from its assets.

In summary, Coty Inc’s Operating ROA has demonstrated significant growth from 2021 to 2022, followed by periods of stabilization. The fluctuation highlights operational improvements and challenges, with the company maintaining a consistent, though modest, level of asset efficiency in the recent fiscal years.