Coty Inc (COTY)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	3,827,100	3,811,100	3,154,500	2,860,700	3,004,600
Debt-to-equity ratio		1.00	1.10	1.40	1.89	2.63

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,841,800K ÷ $3,827,100K
= 1.00

The debt-to-equity ratio of Coty Inc has been decreasing over the past five years, indicating a positive trend towards a lower level of financial leverage. As of June 30, 2024, the debt-to-equity ratio stands at 1.00, reflecting a balance between debt and equity financing. This improvement in the ratio suggests that the company may be reducing its reliance on debt to finance its operations and investments.

Comparing it to previous years, there has been a steady decline in the debt-to-equity ratio from 2.63 in June 30, 2020, to 1.00 in June 30, 2024. This decreasing trend indicates that Coty Inc has been effectively managing its debt levels relative to shareholder equity, which can enhance financial stability and reduce financial risk.

Overall, the decreasing debt-to-equity ratio of Coty Inc over the past five years reflects a positive trajectory towards a more balanced and sustainable capital structure, potentially improving the company's financial health and resilience to economic fluctuations. However, further monitoring of the trend is recommended to ensure continued prudent financial management.