Coty Inc (COTY)

Solvency ratios

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
Debt-to-assets ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Debt-to-capital ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Debt-to-equity ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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

Coty Inc's solvency ratios, as reflected in the provided data, demonstrate a consistent pattern over the analyzed periods indicating an absence of leverage-related risk from debt obligations. Specifically, the debt-to-assets, debt-to-capital, and debt-to-equity ratios are uniformly recorded at zero across all dates from September 2020 through June 2025. This implies that the company reported no interest-bearing debt during this timeframe, suggesting a fully equity-funded capital structure during each period.

The persistent zero values in these debt ratios highlight that Coty's financial structure has not relied on external borrowing or leverage; instead, its operations appear financed entirely through equity. Such a capital configuration generally reduces financial risk, as there are no debt service obligations that could impose cash flow pressures or insolvency risks stemming from borrowing.

Conversely, the financial leverage ratio, which measures the degree of financial leverage employed by the company (calculated as total assets divided by equity), fluctuates within a range of approximately 2.85 to 4.25 over the same period. The ratios show a decreasing trend from 4.25 in September 2020 to around 2.85 in December 2023, with slight fluctuations thereafter. This indicates that despite the absence of reported debt, Coty’s assets relative to equity vary, possibly due to changes in asset base and equity levels or accounting adjustments.

In sum, the zero debt ratios suggest a conservative leverage profile, reducing solvency risk and indicating that Coty’s financial resilience is primarily maintained through equity capital rather than borrowed funds. The variations in the financial leverage ratio reflect changes in asset levels and equity, but within a context of no debt-related liabilities, the company’s immediate solvency appears secure according to these ratios.


Coverage ratios

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
Interest coverage -0.35 -0.57 1.37 1.86 1.94 2.58 2.39 2.19 2.06 0.67 0.75 1.00 0.42 1.28 1.15 0.97 0.54 -3.35 -4.70 -6.54

Analyzing Coty Inc's interest coverage ratios from September 2020 through June 2025 reveals significant fluctuations indicating variable capacity to meet interest obligations over this period.

During the initial period ending September 2020, the company exhibited a markedly negative interest coverage of -6.54, signifying substantial difficulty in covering interest expenses from operating earnings. This negative trend persisted into December 2020 and March 2021, with ratios of -4.70 and -3.35 respectively, underscoring persistent earnings deficits relative to interest obligations.

A notable shift occurred around June 2021, when the interest coverage turned positive at 0.54, and further improved to 0.97 by September 2021. In 2022, the ratio continued its upward trajectory, reaching 1.28 in March 2022, indicating a capacity to nearly cover interest expenses from operating earnings. Throughout 2022, the ratios fluctuated but maintained above the breakeven point, with the highest value at 2.39 in December 2023, suggesting robust earnings relative to interest.

From the first half of 2023 onward, interest coverage stabilizes around the 1.86 to 2.58 range, demonstrating an improved but moderate capacity to service interest costs. However, the data reveals a reversal in trend commencing March 2025, with ratios turning negative again (-0.57 in March 2025 and -0.35 in June 2025), indicating that operating earnings are insufficient to cover interest expenses, potentially signaling financial distress or a need for restructuring.

Overall, the interest coverage metrics highlight periods of financial instability, followed by noteworthy recovery and stabilization through 2022 and most of 2023. Nonetheless, the recent decline into negative territory in early 2025 suggests emerging concerns regarding the company's ability to meet its interest obligations solely from operational earnings.