Coty Inc (COTY)

Return on assets (ROA)

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Net income US$ in thousands -367,900 89,400 508,200 259,500 -67,800
Total assets US$ in thousands 11,907,700 12,082,500 12,661,600 12,116,100 13,691,400
ROA -3.09% 0.74% 4.01% 2.14% -0.50%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $-367,900K ÷ $11,907,700K
= -3.09%

Coty Inc’s return on assets (ROA) has exhibited notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. In fiscal year 2021, the ROA was recorded at -0.50%, indicating a marginally negative efficiency in generating earnings from its asset base. This negative return suggests that, during this period, the company was likely experiencing challenges in operational performance and profitability, which could be attributable to various factors such as market conditions, product portfolio issues, or transitional phases.

By June 30, 2022, the company experienced a significant improvement in ROA, rising to 2.14%. This positive shift reflects an enhancement in asset utilization and profitability, possibly driven by strategic initiatives, cost efficiencies, or favorable market conditions that led to improved earnings relative to its asset base.

The upward momentum continued into June 30, 2023, with ROA reaching 4.01%, which marks a peak in this period. This suggests a period of strong operational performance and effective asset management, translating into higher profitability relative to the assets employed.

However, the subsequent year saw a decline in ROA to 0.74% on June 30, 2024. While still positive, this reduction indicates a contraction in the company’s efficiency in generating earnings from its assets or perhaps increased asset base without a proportional increase in profits. Such a decrease could stem from market pressures, increased expenses, or strategic restructuring that temporarily impacted operational efficiency.

Looking ahead to June 30, 2025, the ROA turned negative again to -3.09%, signaling a reversal in performance and potential challenges faced by the company. The negative value indicates that assets were not only underperforming in generating income but also possibly contributing to losses, which warrants further investigation into underlying causes such as declining sales, increased costs, or asset impairments.

Overall, the trend in Coty Inc’s ROA over this period indicates a cycle of recovery, peak performance, partial retrenchment, and subsequent deterioration, reflecting the company's evolving financial health and operational effectiveness in asset utilization.