COTYCAUTIOUS

COTY Quick Ratio Analysis

0.35x

Higher than 63% of Consumer Defensive sector peers

Updated 347h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company's ability to cover short-term bills using its most liquid assets—cash, marketable securities, and receivables—without selling inventory.

Sector Performance

63th percentile

COTY

0.35x

Sector Median

0.34x

Sector Avg

0.46x

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Deep Analysis

The quick ratio measures a company's ability to cover short-term bills using its most liquid assets—cash, marketable securities, and receivables—without selling inventory.

COTY’s current 0.35x means it has only $0.35 in these liquid assets for every $1.00 of current liabilities, indicating a thin liquidity cushion. This sits below the sector median of 0.39x, placing COTY in the 44th percentile among its Consumer Defensive peers. The trend is undefined: both the year-over-year and quarter-over-quarter changes are reported as N/A, so no directional signal is available from recent history. The low ratio alone points to higher short-term liquidity risk, but the absence of trend data limits any conclusion about whether pressure is building or easing. This metric directly supports the overall CAUTIOUS verdict, as the sub-median quick ratio heightens vulnerability to cash flow disruptions.

Frequently Asked Questions

What does the Quick Ratio tell investors about COTY?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

How does COTY's Quick Ratio compare to its sector?

COTY's Quick Ratio of 0.35x compares to a Consumer Defensive sector median of 0.34x, placing it in the 63th percentile.

Who are COTY's closest peers by Quick Ratio?

The closest Consumer Defensive peers by Quick Ratio include: MO (0.34x), CPB (0.32x), ADM (0.28x), PM (0.42x), KDP (0.24x).

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Learn More About Quick Ratio

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The Formula

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.