Coty Inc (COTY)

Debt-to-capital ratio

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Long-term debt	US$ in thousands	3,841,800	3,902,300	3,682,900	4,095,400	4,178,200	4,225,000	4,014,000	4,312,800	4,409,100	4,316,900	4,878,500	5,250,000	5,401,000	5,182,400	5,139,900	8,134,800	7,892,100	9,172,000	7,233,800	7,453,500
Total stockholders’ equity	US$ in thousands	3,827,100	3,992,600	4,424,800	3,721,300	3,811,100	3,737,600	3,531,400	3,051,800	3,154,500	3,598,700	3,471,500	3,243,400	2,860,700	2,962,200	3,077,400	3,201,100	3,004,600	3,732,200	4,471,700	4,455,000
Debt-to-capital ratio		0.50	0.49	0.45	0.52	0.52	0.53	0.53	0.59	0.58	0.55	0.58	0.62	0.65	0.64	0.63	0.72	0.72	0.71	0.62	0.63

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,841,800K ÷ ($3,841,800K + $3,827,100K)
= 0.50

The debt-to-capital ratio of Coty Inc has shown fluctuations over the past few years, ranging from 0.45 to 0.72. The ratio indicates the proportion of the company's capital that is financed through debt. A higher ratio suggests a greater reliance on debt financing, while a lower ratio signals a stronger equity position.

In the recent quarters, the debt-to-capital ratio has been relatively stable around the 0.50 to 0.55 range, indicating a moderate level of debt utilization compared to equity. However, the ratio has peaked at 0.72 in the past, indicating a period of higher debt relative to capital.

It is important for investors and stakeholders to monitor changes in the debt-to-capital ratio over time, as significant shifts may impact the company's financial health and risk profile. The trend in Coty Inc's debt-to-capital ratio suggests a need for continued monitoring of the company's debt management practices.