Coty Inc (COTY)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,685,100	3,637,400	3,784,700	4,187,600	3,827,100	4,135,000	4,567,200	3,863,700	3,953,500	3,880,000	3,673,800	3,194,200	3,296,900	3,741,100	3,613,900	3,697,100	3,897,000	3,998,500	4,079,600	4,180,100
ROE		-9.98%	-10.89%	0.36%	4.08%	2.34%	5.30%	7.09%	9.87%	12.85%	4.99%	3.78%	5.07%	7.87%	9.49%	8.77%	-5.32%	-5.17%	-19.55%	-26.20%	-20.04%

June 30, 2025 calculation

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

The analysis of Coty Inc.'s return on equity (ROE) over the specified period reveals significant fluctuations, indicating considerable variability in the company's profitability relative to shareholders' equity. Initially, during the fiscal year ending September 30, 2020, the ROE was markedly negative at -20.04%, reflecting substantial losses or adverse net income relative to equity. This negative trend persisted into December 2020, with the ROE declining further to -26.20%, suggesting deteriorating financial performance during this period.

In the subsequent quarters, there was an observable improvement, with the ROE moving closer to the break-even point: ending March 2021 at -19.55%, and then notably reducing the magnitude of negativity to -5.17% by June 2021. This trend indicated an ongoing recovery, albeit still reflecting losses.

A turning point occurred in December 2021, when the ROE entered positive territory at 8.77%, marking a significant shift from prior negative figures. This positive momentum continued into early 2022, with ROE reaching 9.49% in March, and remaining robust through June 2022 at 7.87%. The upward trajectory persisted through late 2022, with ROE values remaining positive but gradually declining: 5.07% in September and 3.78% in December.

In 2023, the ROE demonstrated slight fluctuations but generally maintained positive levels, with the first quarter at 4.99%, second quarter at 12.85%, and third quarter at 9.87%. This period suggests a phase of relative stability and improved profitability compared to earlier years. However, by the end of 2023 and into the first half of 2024, a downward trend emerged: the ROE declined to 7.09% in December 2023, then to 5.30% in March 2024, followed by a further decrease to 2.34% in June 2024. The third quarter of 2024 saw a modest uptick to 4.08%, but the ROE remained relatively subdued.

Subsequently, the ROE continued to decline, reaching a near-neutral level of 0.36% in December 2024. The subsequent period saw a downturn into negative territory, with March 2025 recording a ROE of -10.89%, and June 2025 slightly improving to -9.98%. These negative values indicate that the company returned to losses in terms of shareholder equity, reflecting challenges in generating adequate net income relative to equity investments.

Overall, the historical ROE data demonstrates periods of significant distress, marked by negative ROE figures into 2020 and early 2021, followed by a transition into positive territory and a period of relative profitability stabilization during 2022 and 2023. Nonetheless, recent data signals renewed financial struggle, with declining ROE and negative outcomes emerging again by early 2025. This pattern underscores the volatility in Coty Inc.'s profitability, likely driven by operational, market, or strategic factors impacting its ability to generate consistent returns for shareholders.