Coty Inc (COTY)

Debt-to-equity 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-equity ratio		1.00	0.98	0.83	1.10	1.10	1.13	1.14	1.41	1.40	1.20	1.41	1.62	1.89	1.75	1.67	2.54	2.63	2.46	1.62	1.67

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 shown fluctuations over the past few quarters. The ratio peaked at 2.63 in March 2020 and has since fluctuated between 0.83 and 1.89. A ratio of 1.00 as of June 30, 2024, indicates that the company has equal amounts of debt and equity.

A high debt-to-equity ratio can signify that a company is using more debt to finance its operations, which might indicate higher financial risk. Conversely, a low ratio can suggest a more conservative financial structure with less reliance on debt.

Coty Inc should monitor its debt levels closely to ensure they are sustainable and aligned with its financial objectives and risk tolerance. Management should continuously assess the company's capital structure to optimize its financing mix and maintain a healthy balance between debt and equity.