Coty Inc (COTY)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	3,841,800	4,178,200	4,409,100	5,401,000	7,892,100
Total assets	US$ in thousands	12,082,500	12,661,600	12,116,100	13,691,400	16,728,800
Debt-to-assets ratio		0.32	0.33	0.36	0.39	0.47

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,841,800K ÷ $12,082,500K
= 0.32

The debt-to-assets ratio of Coty Inc has exhibited a declining trend over the past five years, moving from 0.47 in June 2020 to 0.32 in June 2024. This decreasing trend indicates that Coty Inc has been able to reduce its reliance on debt compared to its total assets over the years. A lower debt-to-assets ratio signifies a healthier financial position and lower financial risk for the company.

The improvement in the debt-to-assets ratio could indicate that Coty Inc has been managing its debt levels effectively, paying down debt, or growing its asset base. It suggests that the company may have better financial stability and flexibility to weather economic downturns or pursue growth opportunities.

Overall, the decreasing trend in Coty Inc's debt-to-assets ratio reflects positively on the company's financial management and indicates a stronger balance sheet position over the years.