Coty Inc (COTY)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 428,000 | 538,000 | 339,900 | 18,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,685,100 | 3,827,100 | 3,953,500 | 3,296,900 | 3,897,000 |
| Return on total capital | 0.00% | 11.18% | 13.61% | 10.31% | 0.47% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,685,100K)
= 0.00%
The analysis of Coty Inc.'s return on total capital over the specified period reveals significant fluctuations, indicative of the company's varying efficiency in generating profits relative to its total capital base.
As of June 30, 2021, the return on total capital was recorded at a relatively modest 0.47%, suggesting limited profitability or efficiency in utilizing its capital during that fiscal year. This low figure may reflect operational challenges, investments, or market conditions impacting overall performance.
A notable improvement is observed by June 30, 2022, with the return increasing sharply to 10.31%. This substantial rise indicates a significant gain in Coty’s capacity to generate earnings from its total capital, potentially attributable to operational restructuring, increased sales, cost efficiencies, or strategic initiatives implemented during that period.
The upward trend continues into June 30, 2023, where the return further improves to 13.61%. This progression suggests sustained profitability and effective utilization of capital resources, positioning the company at a higher level of financial efficiency. The continued growth during this timeframe may also reflect positive market conditions or successful brand extensions.
However, by June 30, 2024, the return decreases to 11.18%, indicating a dip from the previous year’s peak but still remaining significantly higher than the 2021 figure. This slight decline could be attributable to changes in operational performance, increased expenses, or market dynamics that temporarily impacted profitability.
The data point for June 30, 2025, shows a return of 0.00%. This drastic reduction could be indicative of a temporary or extraordinary event, such as restructuring, impairment charges, or strategic withdrawal from certain markets, resulting in negligible or zero returns on the total capital employed.
Overall, Coty Inc. experienced a marked improvement in return on total capital from 2021 to 2023, suggesting a period of enhanced operational efficiency and profitability. The subsequent decline in 2024 and the reported zero return in 2025 highlight potential challenges or extraordinary circumstances impacting the company’s ability to generate returns relative to its total capital base.
Peer comparison
Jun 30, 2025