Coty (NYSE:COTY) Altman Z-Score

: 0.78 (As of Today)

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Warning Sign:

Altman Z-score of 0.79 is in distress zone. This implies bankruptcy possibility in the next two years.

Coty has a Altman Z-Score of 0.78, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Coty's Altman Z-Score or its related term are showing as below:

COTY' s Altman Z-Score Range Over the Past 10 Years
Min: -0.23 Med: 0.76 Max: 2.32
Current: 0.79

During the past 13 years, Coty's highest Altman Z-Score was 2.32. The lowest was -0.23. And the median was 0.76.

Coty Altman Z-Score Historical Data

The historical data trend for Coty's Altman Z-Score 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

Altman Z-Score

-0.23

-0.06

0.14

0.36

0.82

Coty Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Altman Z-Score																0.36	0.26	0.39	0.66	0.82

Competitive Comparison

For the Household & Personal Products subindustry, Coty's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Coty's Altman Z-Score distribution charts can be found below:

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

Coty Altman Z-Score Calculation

Altman 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.

Coty's Altman Z-Score for today is calculated with this formula:

1.2

1.4

3.3

0.6

1.0

1.2

-0.0541

1.4

-0.3939

3.3

0.0763

0.6

1.1788

1.0

0.4387

0.78

Trailing Twelve Months (TTM) ended in Jun. 2023:
Total Assets was $12,662 Mil.
Total Current Assets was $2,052 Mil.
Total Current Liabilities was $2,737 Mil.
Retained Earnings was $-4,988 Mil.
Pre-Tax Income was 78.8 + 141.6 + 280.2 + 204.2 = $705 Mil.
Interest Expense was -73.3 + -65.2 + -65 + -57.6 = $-261 Mil.
Revenue was 1351.6 + 1288.9 + 1523.6 + 1390 = $5,554 Mil.
Market Cap (Today) was $9,936 Mil.
Total Liabilities was $8,428 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1	=	Working Capital	/	Total Assets
	=	(Total Current Assets - Total Current Liabilities)	/	Total Assets
	=	(2051.7 - 2736.8)	/	12661.6
	=	-0.0541

X2	=	Retained Earnings	/	Total Assets
	=	-4987.9	/	12661.6
	=	-0.3939

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(704.8 - -261.1)	/	12661.6
	=	0.0763

X4	=	Market Value Equity	/	Book Value of Total Liabilities
	=	Market Cap	/	Total Liabilities
	=	9935.555	/	8428.3
	=	1.1788

X5	=	Revenue	/	Total Assets
	=	5554.1	/	12661.6
	=	0.4387

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Coty has a Altman Z-Score of 0.78 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.

Coty (NYSE:COTY) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Be Aware

Altman Z-Score does not apply to financial companies.

Coty Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Coty's Altman Z-Score 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 » Altman Z-Score

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