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Coty (NYSE:COTY) Financial Strength

: 4 (As of Dec. 2023)
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Coty has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Coty's Interest Coverage for the quarter that ended in Dec. 2023 was 3.93. Coty's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.58. As of today, Coty's Altman Z-Score is 0.94.


Competitive Comparison

For the Household & Personal Products subindustry, Coty's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Coty Financial Strength Distribution

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

* The bar in red indicates where Coty's Financial Strength falls into.



Coty Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Coty's Interest Expense for the months ended in Dec. 2023 was $-62 Mil. Its Operating Income for the months ended in Dec. 2023 was $242 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $3,935 Mil.

Coty's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*242.4/-61.7
=3.93

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Coty's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(70.4 + 3934.5) / 6910.4
=0.58

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Coty has a Z-score of 0.94, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.94 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Coty  (NYSE:COTY) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Coty has the Financial Strength Rank of 4.


Coty Financial Strength Related Terms

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


Coty (NYSE:COTY) Business Description

Address
350 Fifth Avenue, New York, NY, USA, 10118
Coty is a global beauty maker that focuses on fragrance (59% of sales) and color cosmetics (28%), with limited exposure to skincare (5%) and body care (8%). For its fragrance business, Coty licenses luxury and high-end brands including Gucci, Burberry, Hugo Boss, Davidoff, and Calvin Klein, while its consumer cosmetics business focuses on acquired mass brands such as CoverGirl, Max Factor, Rimmel, Sally Hansen, and Bourjois. It also collaborates with social media celebrities Kim Kardashian and Kylie Jenner to launch makeup products bearing their names. By region, Coty generates close to 45% of sales from Europe, 30% from North America, 10% from Asia, and 8% from Latin America, with the rest from travel retail. German investment firm JAB is a controlling shareholder, with a 53% stake.
Executives
Isabelle Parize director 350 FIFTH AVENUE, NEW YORK NY 10118
Jab Holdings B.v. 10 percent owner PIET HEINKADE 55, AMSTERDAM P7 NL 1019 GM
Maria Asunicion Aramburuzabala director PASEO DE LOS TAMARINDOS 400, TORRE B PISO 25, MEXICO DF O5 0000
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
Olivier Goudet director 350 FIFTH AVENUE, NEW YORK NY 10118
Robert S Singer director 6301 FITCH PATH, NEW ALBANY OH 43054
Bretten Gordon Von officer: Chief Transformation Officer 350 FIFTH AVENUE, NEW YORK NY 10118
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 Group Partnership L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Laurent Mercier officer: Chief Financial Officer 350 FIFTH AVENUE, NEW YORK NY 10118
Anna Adeola Makanju director 350 FIFTH AVENUE, NEW YORK NY 10118
Bayern Anna Von officer: Chief Corp. Affairs Officer 350 FIFTH AVENUE, NEW YORK NY 10118
Johannes P Huth director
Sue Nabi director, officer: Chief Executive Officer 350 FIFTH AVENUE, NEW YORK NY 10118