Coty (NYSE:COTY) Interest Coverage

: 1.74 (As of Jun. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Coty's Operating Income for the three months ended in Jun. 2023 was $128 Mil. Coty's Interest Expense for the three months ended in Jun. 2023 was $-73 Mil. Coty's interest coverage for the quarter that ended in Jun. 2023 was 1.74. The higher the ratio, the stronger the company's financial strength is.

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

COTY' s Interest Coverage Range Over the Past 10 Years
Min: 0.3 Med: 1.39 Max: 6.97
Current: 2.06

COTY's Interest Coverage is ranked worse than
81.49% of 1372 companies
in the Consumer Packaged Goods industry
Industry Median: 8.14 vs COTY: 2.06

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Coty Interest Coverage Historical Data

The historical data trend for Coty's Interest Coverage 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

Interest Coverage

0.30

0.66

1.16

2.06

Coty Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Interest Coverage																-	2.96	3.02	0.65	1.74

Competitive Comparison

For the Household & Personal Products subindustry, Coty's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where Coty's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.

Coty Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Coty's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Coty's Interest Expense was $-261 Mil. Its Operating Income was $537 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,426 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	537.2	/	-261.1
	=	2.06

Coty's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the three months ended in Jun. 2023, Coty's Interest Expense was $-73 Mil. Its Operating Income was $128 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,426 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	127.9	/	-73.3
	=	1.74

The higher the ratio, the stronger the company's Financial Strength is.

Coty (NYSE:COTY) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Coty Interest Coverage Related Terms

Thank you for viewing the detailed overview of Coty's Interest Coverage 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 » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CO3A:Germany CO3A:Germany 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