Coty Inc (COTY)

Financial leverage ratio

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
Total assets US$ in thousands 11,907,700 11,470,500 11,724,300 12,516,000 12,082,500 12,322,200 13,015,700 12,616,900 12,661,600 12,705,500 12,454,600 11,947,900 12,116,100 13,269,100 13,434,000 14,038,400 13,691,400 13,622,300 14,159,800 17,780,100
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
Financial leverage ratio 3.23 3.15 3.10 2.99 3.16 2.98 2.85 3.27 3.20 3.27 3.39 3.74 3.67 3.55 3.72 3.80 3.51 3.41 3.47 4.25

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,907,700K ÷ $3,685,100K
= 3.23

The financial leverage ratio of Coty Inc. exhibits notable fluctuation over the analyzed period from September 30, 2020, through June 30, 2025. Initially, at 4.25, it indicates a relatively high level of leverage in September 2020. Subsequently, the ratio declines significantly, reaching a low of approximately 2.85 by December 31, 2024. This downward trend suggests a reduction in the company's reliance on debt relative to its equity, possibly reflecting deleveraging efforts or improved equity position.

Throughout the period, coty's leverage ratio demonstrates a general decreasing pattern, with intermittent minor increases, such as a slight uptick from 3.27 in March 2023 to 3.27 in September 2023, and a small rise from 2.85 in December 2024 to 3.10 in March 2025. The most recent data indicates a ratio of 3.23 as of June 30, 2025, maintaining a moderate level of leverage.

Overall, the trend signifies that Coty Inc. has been progressively decreasing its financial leverage over the observed timeframe, which could imply a strategic shift toward lower debt levels to enhance financial stability and reduce financial risk. Nonetheless, the leverage ratio remains above 2.5, indicating that the company continues to operate with a significant degree of debt relative to its equity.