Coty Inc (COTY)

Return on assets (ROA)

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Net income (ttm) US$ in thousands -367,900 -396,000 13,500 170,700 89,400 219,200 323,800 381,200 508,200 193,800 139,000 162,100 259,500 355,000 317,000 -196,700 -201,300 -781,600 -1,068,800 -837,600
Total assets US$ in thousands 11,907,700 11,470,500 11,724,300 12,516,000 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
ROA -3.09% -3.45% 0.12% 1.36% 0.74% 1.78% 2.49% 3.02% 4.01% 1.53% 1.12% 1.36% 2.14% 2.68% 2.36% -1.40% -1.47% -5.74% -7.55% -4.71%

June 30, 2025 calculation

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

The analysis of Coty Inc.'s return on assets (ROA) over the specified periods reveals notable fluctuations that highlight the company's evolving profitability relative to its total assets. During the fiscal year ending September 2020, the ROA was negative at -4.71%, indicating that the company was experiencing losses relative to its asset base. This negative trend persisted through the December 2020 quarter, worsening to -7.55%, and remained negative into the March 2021 quarter at -5.74%. These persistent negative figures suggest ongoing challenges in generating sufficient earnings from assets during this period.

The ROA continued to improve during the June and September 2021 quarters, narrowing to -1.47% and -1.40%, respectively. This indicates a recovery phase where asset efficiency was gradually improving but the company still reported an overall negative return. Moving into the latter part of 2021, the ROA turned positive, reaching 2.36% in December 2021 and slightly increasing to 2.68% in March 2022. This shift from negative to positive indicates an inflection point where the company began generating profit relative to its assets.

The positive trend persisted into mid-2022, with ROA values declining slightly to 2.14% in June and decreasing further to 1.36% by September 2022, yet remaining above breakeven. During the subsequent periods, the ROA stabilized around the 1-2% range, with December 2022 at 1.12%, March 2023 at 1.53%, and June 2023 reaching a peak of 4.01%. Although there was some variability, the overall trend during this period suggests a modest but consistent recovery in asset profitability.

However, from September 2023 onward, the ROA experienced a decline, falling from 3.02% in September 2023 to 2.49% in December 2023, and further down to 1.78% in March 2024. The subsequent quarters show a more pronounced decrease, with the September 2024 ROA at 1.36%, December 2024 at 0.12%, and negative figures returning in the first half of 2025 at -3.45% in March and -3.09% in June. These negative values in early 2025 suggest a setback in asset efficiency, reflecting either declining profitability or increased asset base without commensurate earnings.

Overall, the ROA trajectory indicates a period of sustained loss leading into early 2021, a gradual recovery into positive territory through 2021 and 2022, followed by a period of stability and modest gains, and ultimately a recent decline back into negative territory. This pattern underscores the volatility in Coty Inc.'s profitability relative to its assets over this timeframe, highlighting periods of operational challenges, strategic shifts, or market conditions influencing its ability to generate profits from its asset base.