Coty (NYSE:COTY) ROE %

: 3.36% (As of Jun. 2023)

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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Coty's annualized net income for the quarter that ended in Jun. 2023 was $132 Mil. Coty's average Total Stockholders Equity over the quarter that ended in Jun. 2023 was $3,917 Mil. Therefore, Coty's annualized ROE % for the quarter that ended in Jun. 2023 was 3.36%.

The historical rank and industry rank for Coty's ROE % or its related term are showing as below:

COTY' s ROE % Range Over the Past 10 Years
Min: -56.33 Med: -3.58 Max: 25.64
Current: 14.12

During the past 13 years, Coty's highest ROE % was 25.64%. The lowest was -56.33%. And the median was -3.58%.

COTY's ROE % is ranked better than
77.15% of 1799 companies
in the Consumer Packaged Goods industry
Industry Median: 5.97 vs COTY: 14.12

Coty ROE % Historical Data

The historical data trend for Coty's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Coty Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROE %

-56.33

-24.24

-5.29

7.21

14.02

Coty Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
ROE %																-32.00	15.85	27.76	11.48	3.36

Competitive Comparison

For the Household & Personal Products subindustry, Coty's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

Coty ROE % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Coty's ROE % distribution charts can be found below:

* The bar in red indicates where Coty's ROE % falls into.

Coty ROE % Calculation

Coty's annualized ROE % for the fiscal year that ended in Jun. 2023 is calculated as

ROE %	=	Net Income (A: Jun. 2023 )	/	( (Total Stockholders Equity (A: Jun. 2022 )	+	Total Stockholders Equity (A: Jun. 2023 ))	/ count )
	=	508.2	/	( (3296.9	+	3953.5)	/ 2 )
	=	508.2	/	3625.2
	=	14.02 %

Coty's annualized ROE % for the quarter that ended in Jun. 2023 is calculated as

ROE %	=	Net Income (Q: Jun. 2023 )	/	( (Total Stockholders Equity (Q: Mar. 2023 )	+	Total Stockholders Equity (Q: Jun. 2023 ))	/ count )
	=	131.6	/	( (3880	+	3953.5)	/ 2 )
	=	131.6	/	3916.75
	=	3.36 %

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2023) net income data. ROE % is displayed in the 30-year financial page.

Coty (NYSE:COTY) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

	ROE %		(Q: Jun. 2023 )
=	Net Income	/	Total Stockholders Equity
=	131.6	/	3916.75
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(131.6 / 5406.4)	*	(5406.4 / 12683.55)	*	(12683.55 / 3916.75)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	2.43 %	*	0.4263	*	3.2383
=	ROA %	*	Equity Multiplier
=	1.04 %	*	3.2383
=	3.36 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

	ROE %		(Q: Jun. 2023 )
=	Net Income	/	Total Stockholders Equity
=	131.6	/	3916.75
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(131.6 / 315.2)	*	(315.2 / 511.6)	*	(511.6 / 5406.4)	*	(5406.4 / 12683.55)	*	(12683.55 / 3916.75)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.4175	*	0.6161	*	9.46 %	*	0.4263	*	3.2383
=	3.36 %

Note: The net income data used here is four times the quarterly (Jun. 2023) net income data. The Revenue data used here is four times the quarterly (Jun. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
^* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.

Coty ROE % Related Terms

Thank you for viewing the detailed overview of Coty's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Coty (NYSE:COTY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Coty Inc (NYSE:COTY) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

CO3A:Germany COTY34:Brazil

Address

350 Fifth Avenue, New York, NY, USA, 10118

Website

https://www.coty.com

Coty Inc is a global beauty firm that sells fragrance, color cosmetics, and skin and body care. It licenses brands such as Calvin Klein, Hugo Boss, Gucci, Burberry, and Davidoff for its prestige portfolio. Coty's most popular color cosmetic brands are CoverGirl, Max Factor, Rimmel, Sally Hansen, and Kylie. Coty also holds a minority stake in a salon and retail haircare business, including brands Wella, Clairol, OPI, and GHD. The company has two reportable segments such as Prestige and Consumer Beauty. It generates majority of its revenue from Prestige segment.

Executives

Priya Srinivasan	officer: Chief People & Purpose Officer	350 FIFTH AVENUE, NEW YORK NY 10118
Rochet Lubomira	director	6425 HALL OF FAME LANE, FRISCO TX 75034
Laurent Mercier	officer: Chief Financial Officer	350 FIFTH AVENUE, NEW YORK NY 10118
Anna Adeola Makanju	director	350 FIFTH AVENUE, NEW YORK NY 10118
Maria Asunicion Aramburuzabala	director	PASEO DE LOS TAMARINDOS 400, TORRE B PISO 25, MEXICO DF O5 0000
Johannes P Huth	director
Sue Nabi	director, officer: Chief Executive Officer	350 FIFTH AVENUE, NEW YORK NY 10118
Bayern Anna Von	officer: Chief Corp. Affairs Officer	350 FIFTH AVENUE, NEW YORK NY 10118
Nancy G. Ford	director	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019
George R Roberts	10 percent owner	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 2800 SAND HILL ROAD, MENLO PARK CA 94025
Kkr Rainbow Aggregator L.p.	10 percent owner	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019
Kkr Rainbow Aggregator Gp Llc	10 percent owner	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019
Kkr Europe V S.a R.l.	10 percent owner	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019
Kkr Associates Europe V Scsp	10 percent owner	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019
Kkr Europe V Holdings Ltd	10 percent owner	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019