Coty Inc (COTY)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 546,700 | 950,900 | 665,500 | -141,500 | -1,151,100 |
| Long-term debt | US$ in thousands | 3,841,800 | 4,178,200 | 4,409,100 | 5,401,000 | 7,892,100 |
| Total stockholders’ equity | US$ in thousands | 3,827,100 | 3,811,100 | 3,154,500 | 2,860,700 | 3,004,600 |
| Return on total capital | 7.13% | 11.90% | 8.80% | -1.71% | -10.56% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $546,700K ÷ ($3,841,800K + $3,827,100K)
= 7.13%
Analyzing Coty Inc's return on total capital over the past five years reveals fluctuations in performance. The return on total capital was positive in the last three years, with a peak of 11.90% in Jun 2023, indicating efficient use of both debt and equity to generate profits. However, the ratio declined to 7.13% in Jun 2024, suggesting a decrease in profitability relative to the invested capital. In contrast, the firm experienced negative returns in Jun 2021 and Jun 2020, reflecting a situation where the capital employed did not yield sufficient profits, potentially indicating operational inefficiencies or financial challenges during those periods. Overall, the trend in return on total capital demonstrates variability in Coty Inc's ability to generate returns for its capital providers over the past five years.
Peer comparison
Jun 30, 2024