Coty Inc (COTY)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	546,700	641,000	606,700	569,300	543,700	337,300	350,900	395,600	240,900	320,100	261,600	34,600	-48,600	-970,900	-1,269,000	-1,366,500	-1,236,500	-3,264,600	-2,879,600	-3,603,700
Total assets	US$ in thousands	12,082,500	12,322,200	13,015,700	12,616,900	12,661,600	12,705,500	12,454,600	11,947,900	12,116,100	13,269,100	13,434,000	14,038,400	13,691,400	13,622,300	14,159,800	17,780,100	16,728,800	18,310,000	17,360,900	17,283,500
Operating ROA		4.52%	5.20%	4.66%	4.51%	4.29%	2.65%	2.82%	3.31%	1.99%	2.41%	1.95%	0.25%	-0.35%	-7.13%	-8.96%	-7.69%	-7.39%	-17.83%	-16.59%	-20.85%

June 30, 2024 calculation

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

The operating return on assets (operating ROA) for Coty Inc has shown fluctuations over the past several quarters. For the most recent quarter, ending June 30, 2024, the operating ROA stood at 4.52%, indicating that the company generated a return of 4.52% on its assets from its core operations.

Comparing this to the previous quarters, there has been a general trend of improvement in operating ROA from the low of -20.85% in December 2019 to the current level of 4.52%. This suggests that Coty Inc has been able to enhance its operational efficiency and effectiveness in utilizing its assets to generate profits.

However, it is worth noting that there have been periods of volatility in the operating ROA, with fluctuations observed between positive and negative figures. For example, there was a significant improvement in operating ROA in the first quarter of 2021, reaching 2.41%, but the performance deteriorated in the subsequent quarters before showing a recovery in recent quarters.

Overall, while the operating ROA for Coty Inc has shown signs of improvement in the most recent quarters, it is essential for the company to maintain this positive trend and continue striving for efficient asset utilization to drive sustainable profitability.