COTYCAUTIOUS

COTY Current Ratio Analysis

0.75x

Updated 830h ago·SEC filings & market data

Key Takeaway

COTY’s current ratio of 0.75x means it holds only $0.75 in short-term assets for every $1 of short-term obligations, a level that signals potential difficulty covering near-term bills.

Sector Performance

17th percentile

COTY

0.75x

Sector Median

1.26x

Sector Avg

2.60x

Prior Period

0.82x(Aug 2026)

↓ Declining

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Deep Analysis

COTY’s current ratio of 0.75x means it holds only $0.75 in short-term assets for every $1 of short-term obligations, a level that signals potential difficulty covering near-term bills.

That sits far below the sector median of 1.26x, placing COTY in the 17th percentile among peers. The ratio is decreasing: quarter-over-quarter it dropped 8.5% from 0.82x to 0.75x, and no year-over-year figure is available, so the most recent evidence points downward. A low and falling current ratio raises liquidity risk, meaning the company could face tighter cash constraints if revenue stumbles or creditors tighten terms. This supports the overall CAUTIOUS verdict, as the deteriorating liquidity position adds to the case for restraint rather than confidence.

Frequently Asked Questions

What does the Current Ratio tell investors about COTY?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.