Coty Inc (COTY)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.32 | 0.32 | 0.28 | 0.32 | 0.33 | 0.33 | 0.32 | 0.36 | 0.36 | 0.33 | 0.36 | 0.37 | 0.39 | 0.38 | 0.36 | 0.46 | 0.47 | 0.50 | 0.42 | 0.43 |
| Debt-to-capital ratio | 0.50 | 0.49 | 0.45 | 0.52 | 0.52 | 0.53 | 0.53 | 0.59 | 0.58 | 0.55 | 0.58 | 0.62 | 0.65 | 0.64 | 0.63 | 0.72 | 0.72 | 0.71 | 0.62 | 0.63 |
| 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 |
| 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 |
Coty Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations. Over the period from December 2019 to June 2024, the debt-to-assets ratio has fluctuated, hovering around 0.30 to 0.50. This ratio indicates that Coty Inc finances a relatively low proportion of its assets through debt, which can be viewed positively as it suggests lower financial risk.
The debt-to-capital ratio has shown some volatility, ranging from 0.45 to 0.72 during the same period. This ratio indicates the extent to which debt contributes to Coty Inc's capital structure. The fluctuations in this ratio suggest changes in the company's capital structure and borrowing patterns.
The debt-to-equity ratio has also displayed fluctuations from 0.83 to 2.63 over the period observed. This ratio indicates the proportion of debt financing relative to equity, reflecting Coty Inc's reliance on debt to fund its operations and growth. The increasing trend in this ratio indicates a higher level of financial risk and dependency on external financing.
The financial leverage ratio, which measures the company's total assets relative to shareholder equity, has shown significant variability, ranging from 2.94 to 5.57 during the period analyzed. This ratio reflects the degree to which Coty Inc uses debt to finance its assets. The increasing trend in the financial leverage ratio suggests higher financial risk and potential impacts on the company's profitability and stability.
Overall, the solvency ratios of Coty Inc indicate a mix of financial risk and stability. It is essential for investors and stakeholders to closely monitor these ratios to assess the company's long-term financial health and its ability to withstand economic challenges.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.05 | 2.42 | 2.91 | 2.98 | 3.64 | 2.36 | 2.04 | 2.19 | 2.76 | 3.65 | 3.51 | 0.96 | -0.61 | -4.83 | -6.03 | -5.24 | -4.93 | -14.89 | -12.13 | -14.43 |
Interest coverage is a financial ratio that measures a company's ability to pay interest on its debt obligations from its operating income. A higher interest coverage ratio indicates that a company is more capable of covering its interest expenses.
Analyzing Coty Inc's interest coverage over the past quarters reveals fluctuations in the company's ability to cover its interest payments. The interest coverage ratio has displayed variability, ranging from negative values to positive values.
From December 2019 to March 2021, Coty Inc's interest coverage ratio declined significantly, reaching negative values which indicate that the company's operating income was insufficient to cover its interest expenses during those periods. However, from June 2021 onwards, there has been an improvement in the interest coverage ratio, signalling that Coty Inc's operating income has become more adequate to cover its interest obligations.
Although the interest coverage ratio has shown improvement in recent quarters, it is essential for Coty Inc to maintain a comfortable level of interest coverage to ensure its financial health and ability to meet debt obligations in the future. Monitoring this ratio over time will provide insights into the company's financial stability and debt management practices.