Coty Inc (COTY)

Pretax margin

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	184,500	689,800	424,300	-373,300	-1,384,400
Revenue	US$ in thousands	6,119,900	5,281,400	5,118,600	4,115,500	4,449,400
Pretax margin		3.01%	13.06%	8.29%	-9.07%	-31.11%

June 30, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $184,500K ÷ $6,119,900K
= 3.01%

Coty Inc's pretax margin has fluctuated significantly over the past five years. In 2024, the pretax margin stands at 3.01%, indicating that the company generates $0.0301 in pretax profit for every dollar of revenue. This marks a significant decrease from the previous year's pretax margin of 13.06%. The sharp decline in pretax margin from 2023 to 2024 suggests a possible increase in expenses or a decrease in revenue relative to the prior year.

Looking further back, Coty Inc's pretax margin in 2022 was 8.29%, reflecting a moderate level of profitability before experiencing a loss in 2021 with a pretax margin of -9.07%. The negative pretax margin in 2021 indicates that the company incurred more expenses than it generated in revenue before accounting for taxes.

The most substantial decline in pretax margin occurred in 2020, where Coty Inc posted a pretax margin of -31.11%. This significant loss can be attributed to various factors, such as impairment charges, restructuring costs, or a sharp decline in sales.

Overall, Coty Inc's pretax margin has shown volatility in recent years, with fluctuations indicating changes in the company's financial performance and profitability levels. Analysts and investors may want to further examine the underlying reasons behind these fluctuations to assess the company's financial health and future prospects.