Coty Inc (COTY)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,685,100	3,827,100	3,953,500	3,296,900	3,897,000
ROE		-9.98%	2.34%	12.85%	7.87%	-1.74%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-367,900K ÷ $3,685,100K
= -9.98%

The return on equity (ROE) for Coty Inc. has exhibited notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company's ROE was negative at -1.74%, indicating that it was not generating sufficient net income relative to shareholders' equity, and suggesting challenges in profitability or possibly high capital expenditures impacting net earnings.

By June 30, 2022, the ROE improved significantly to 7.87%. This shift reflects a positive change in the company's ability to generate profits from shareholders’ equity, marking a period of relative financial recovery or operational improvements. The upward trend persisted into June 30, 2023, with ROE reaching 12.85%, which signals an even stronger capacity for profitability and effective utilization of shareholders’ equity during this period.

However, the positive trajectory reversed markedly by June 30, 2024, when the ROE diminished to 2.34%. This decline indicates a substantial reduction in net income relative to equity, potentially due to increased expenses, lower sales, or other operational difficulties impacting profitability. The situation further deteriorated by June 30, 2025, as the ROE turned negative again at -9.98%, implying the company experienced losses that eroded shareholders’ equity or failed to generate adequate returns previously achieved.

Overall, Coty Inc.'s ROE dynamics reflect periods of recovery followed by setbacks, demonstrating volatility in profitability. The fluctuations highlight the importance of examining underlying factors such as revenue trends, cost management, and strategic initiatives corresponding to each period to fully understand the drivers behind the changing profitability metrics.