Coty Inc (COTY)

Financial leverage 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
Total assets	US$ in thousands	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	16,728,800	18,310,000	17,360,900	17,283,500
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
Financial leverage ratio		3.16	3.09	2.94	3.39	3.32	3.40	3.53	3.92	3.84	3.69	3.87	4.33	4.79	4.60	4.60	5.55	5.57	4.91	3.88	3.88

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,082,500K ÷ $3,827,100K
= 3.16

The financial leverage ratio of Coty Inc has fluctuated over the past few quarters, ranging from a low of 2.94 to a high of 5.57. The ratio measures the extent to which the company relies on debt to finance its operations and growth. A high financial leverage ratio indicates that a significant portion of Coty's assets are funded by debt, which can increase the company's financial risk in times of economic downturns or high interest rates.

Coty's increasing trend in the financial leverage ratio from 3.16 in June 2024 to 5.57 in September 2019 may suggest a growing reliance on debt financing over this period. While leveraging can amplify returns in favorable times, it also exposes the company to higher risks and interest expenses.

It is essential for investors and stakeholders to closely monitor Coty's financial leverage ratio and its trend over time to assess the company's ability to meet its debt obligations, manage financial risks, and sustain long-term profitability.