Coty Inc (COTY)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -79,100 | -131,500 | 329,600 | 456,400 | 487,400 | 671,900 | 637,400 | 592,700 | 538,000 | 163,900 | 178,500 | 235,200 | 100,500 | 314,900 | 272,200 | 227,900 | 125,400 | -651,000 | -945,500 | -1,269,900 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | -2.15% | -3.62% | 8.71% | 10.90% | 12.74% | 16.25% | 13.96% | 15.34% | 13.61% | 4.22% | 4.86% | 7.36% | 3.05% | 8.42% | 7.53% | 6.16% | 3.22% | -16.28% | -23.18% | -30.38% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-79,100K ÷ ($—K + $3,685,100K)
= -2.15%
The analysis of Coty Inc.'s return on total capital over the period in question reveals a fluctuating trend with an initial deterioration followed by a significant recovery and subsequent variability.
Starting from a notably negative position of -30.38% as of September 30, 2020, the company's return gradually improved over the subsequent quarters, moving towards positive territory. By December 31, 2020, the return had lessened to -23.18%, indicating some improvement but still reflecting a negative return on total capital.
Throughout 2021, the trend continued upward, with the return reaching -16.28% by March 31, 2021; then transitioning into positive values in June 2021 at 3.22%. The pattern of increasing profitability persisted through the latter part of 2021, with a further rise to 6.16% at September 30, 2021, and reaching 7.53% by December 31, 2021.
In 2022, the return maintained positive levels, fluctuating slightly but generally remaining in a moderate positive range, with 8.42% at March 31, 2022, dipping to 3.05% in June, then rebounding to 7.36% at September 30 and 4.86% at year-end. The first quarter of 2023 saw a modest decrease to 4.22%, but the subsequent quarters experienced notable increases: 13.61% at June 30, 2023, and peak at 15.34% during September 2023. This upward movement indicates improved efficiency in generating returns on total capital.
However, the trend shifted in the later periods, with a decline to 13.96% at December 31, 2023, and then a continued decrease to 12.74% at June 30, 2024. The September 2024 return further declined to 10.90%, followed by a sharper decrease to 8.71% at the end of 2024.
More recently, the return on total capital has turned negative again, with -3.62% at March 31, 2025, and -2.15% at June 30, 2025, signaling a downturn in the profitability of the company's capital utilization.
Overall, the period measured reflects significant volatility in Coty Inc.'s return on total capital, characterized by initial losses, substantial recovery, periods of positive returns, and recent signs of decline. The data suggests the company's ability to generate consistent and sustained returns has been challenged in recent periods, with a marked downturn in early 2025.
Peer comparison
Jun 30, 2025