Liquidity remains volatile, as demonstrated by a negative 19.4% free cash flow margin in 2026Q3 and a current ratio of 0.82, indicating potential difficulty in meeting short-term obligations.
Coty Inc. (COTY) cash flow statement — 16-year operating, investing & financing cash flows
| Metric | TTM | Jun'26 | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 |
|---|
| Cash from Operations | 603M | 537.8M | 492.6M | 614.6M | 625.7M | 726.6M | 318.7M | -50.9M | 639.6M | 413.7M | 757.5M | 501.4M | 526.3M | 536.5M | 463.9M | 589.3M | 417.5M |
| Operating CF Margin % | - | 9.26% | 8.36% | 10.05% | 11.27% | 13.7% | 6.88% | -1.08% | 7.4% | 4.4% | 9.9% | 11.53% | 11.97% | 11.79% | 9.98% | 12.78% | 10.22% |
| Operating CF Growth % | 94.12% | 9.18% | -19.85% | -1.77% | -13.89% | 127.99% | 726.13% | -107.96% | 54.6% | -45.39% | 51.08% | -4.73% | -1.9% | 15.65% | -21.28% | 41.15% | - |
| Net Income | -563.2M | -590.2M | -350.2M | 109.4M | 523.2M | 267.7M | -205.1M | -1B | -3.77B | -127.8M | -398.5M | 179.2M | 259.4M | -64.2M | 201.9M | -293.3M | 89.9M |
| Depreciation & Amortization | 474.6M | 482.2M | 420M | 421.1M | 426.7M | 516.4M | 585.3M | 716.5M | 736M | 737M | 555.1M | 232M | 230.9M | 250.7M | 259.6M | 246M | 213.4M |
| Stock-Based Compensation | 21.1M | 46.3M | 50M | 88.8M | 135.9M | 195.5M | 29.9M | 29.8M | 14.8M | 30.6M | 24.6M | 22.2M | 30.6M | 46.8M | 144.4M | 142.6M | 88.5M |
| Deferred Taxes | -144M | -154.9M | -87.5M | -9.8M | 56.3M | 12.1M | -218.1M | -342.7M | -175.7M | -101.7M | -390M | -139.2M | -68.1M | -38.4M | 29.9M | -153.6M | -40.9M |
| Other Non-Cash Items | 802.9M | 827.7M | 773.1M | 192.7M | -430.9M | -390.7M | 358.6M | 593M | 3.96B | 94.4M | 99.8M | 27.7M | 122.8M | 353M | -3.8M | 614.4M | 30.2M |
| Working Capital Changes | 7.6M | -73.3M | -312.8M | -187.6M | -85.5M | 125.6M | -231.9M | -44.8M | -129.8M | -218.8M | 866.5M | 179.5M | -49.3M | -11.4M | -168.1M | 33.2M | 36.4M |
| Change in Receivables | 38.3M | -5.4M | -81.1M | -104.5M | 36.8M | -77.2M | 10.5M | 424.5M | 344.9M | -79.6M | -279.8M | -44.5M | -43.5M | -31.1M | -36.7M | -42.9M | 15.7M |
| Change in Inventory | -77.9M | -50.5M | 4.8M | 67.2M | -180.3M | -48.3M | 81.2M | 124.4M | -21.9M | -60M | 162.3M | 27.2M | 29.4M | 2.2M | 48.8M | -15.7M | -60.9M |
| Change in Payables | 74.4M | 13.6M | -167.9M | -19.4M | 138.4M | 140.5M | -49.7M | -373.5M | -127.3M | 159.5M | 540.9M | 148.2M | 7M | 72.4M | 2.4M | 63.6M | 54.7M |
| Cash from Investing | 797M | 539M | -128.4M | -226.2M | -118.2M | 269.7M | 2.44B | -833.4M | -454M | -687.6M | -1.16B | -1.06B | -171.2M | -257.6M | -229.9M | -333.9M | -2.25B |
| Capital Expenditures | -181.4M | -189.6M | -215M | -245.2M | -222.8M | -174.1M | -173.9M | -267.4M | -426.6M | -446.4M | -432.3M | -150.1M | -200.9M | -231.5M | -193.9M | -207.4M | -112.9M |
| CapEx % of Revenue | 3.14% | 3.27% | 3.65% | 4.01% | 4.01% | 3.28% | 3.76% | 5.67% | 4.93% | 4.75% | 5.65% | 3.45% | 4.57% | 5.09% | 4.17% | 4.5% | 2.76% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 230.6M | 2.65B | 25.6M | -40.8M | -278M | -742.6M | -908.7M | 11.7M | -29.5M | -31M | -129.1M | -2.17B |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 259.1M | 9.3M | 86.6M | 19M | 104.6M | 213.2M | 4.3M | 600K | 13.4M | 36.8M | 11.3M | 29.2M | 18M | 3.4M | 25M | 2.6M | 900K |
| Cash from Financing | -1.45B | -1.16B | -426.8M | -336.7M | -469.3M | -1.03B | -2.8B | 877.3M | -160.3M | 69.3M | 595.2M | 592.6M | -1.14B | -5.7M | 69M | -97.7M | 1.9B |
| Debt Issued (Net) | -1.25B | -888.7M | -122.7M | -327.5M | -268.2M | -721.7M | -3B | 432M | 243.1M | 516.9M | 1.06B | 1.53B | -749.1M | 662.4M | 168.4M | -178.1M | 1.2B |
| Equity Issued (Net) | 0 | 0 | 0 | 355.9M | 900K | 0 | 227.2M | 722.7M | 5.9M | 22.6M | -13.5M | -794.9M | -305.1M | -569.3M | -1.3M | 127M | 778.5M |
| Dividends Paid | -13.2M | -13.2M | -13.3M | -13.4M | -13.7M | -57.2M | -25.7M | -196.9M | -346.2M | -375.8M | -372.6M | -89M | -71M | -76.9M | -57.4M | 0 | -35.3M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.5M | 0 | 0 | -36.3M | -794.9M | -305.1M | -569.3M | -7.5M | 0 | 0 |
| Other Financing | -194M | -259.3M | -292.8M | -351.7M | -188.3M | -255.1M | 4.5M | -80.5M | -63.1M | -94.4M | -77.7M | -56.5M | -13M | -21.9M | -40.7M | -46.6M | -36.3M |
| Net Change in Cash | -49.7M | -81.5M | -50.2M | 36.8M | 20M | -46.6M | -41.6M | -28.4M | 18.2M | -208.5M | 198.3M | 31.1M | -896.7M | 317.6M | 311M | 98.6M | 123.3M |
| Free Cash Flow | 421.6M | 348.2M | 277.6M | 369.4M | 402.9M | 552.5M | 144.8M | -318.3M | 213M | -32.7M | 325.2M | 351.3M | 325.4M | 305M | 270M | 381.9M | 304.6M |
| FCF Margin % | 7.29% | 6% | 4.71% | 6.04% | 7.25% | 10.42% | 3.13% | -6.75% | 2.46% | -0.35% | 4.25% | 8.08% | 7.4% | 6.7% | 5.81% | 8.28% | 7.45% |
| FCF Growth % | 41.14% | 25.43% | -24.85% | -8.31% | -27.08% | 281.56% | 145.49% | -249.44% | 751.38% | -110.06% | -7.43% | 7.96% | 6.69% | 12.96% | -29.3% | 25.38% | - |
| FCF per Share | 0.48 | 0.40 | 0.32 | 0.42 | 0.45 | 0.66 | 0.19 | -0.42 | 0.28 | -0.04 | 0.51 | 0.99 | 0.90 | 0.80 | 0.68 | 1.00 | 0.80 |
| FCF Conversion (FCF/Net Income) | -0.75x | -0.89x | -1.34x | 6.87x | 1.23x | 2.80x | -1.58x | 0.05x | -0.17x | -2.45x | -1.79x | 3.20x | 2.26x | -5.51x | 2.76x | -1.82x | 6.77x |
| Interest Paid | 56.5M | 0 | 218.9M | 205.7M | 229.1M | 215.4M | 230.6M | 280.6M | 290.7M | 242.8M | 190.2M | 90.3M | 64.7M | 63.7M | 71M | 76.4M | 76.9M |
| Taxes Paid | 0 | 0 | 95.4M | 172.6M | 58.6M | 97.2M | 15.9M | 123.2M | 110.3M | 124.6M | 90.1M | 118.1M | 104.8M | 84.1M | 84M | 67.4M | 60.3M |
Quick answers to the most common questions about buying COTY stock.
Coty Inc. (COTY) generated $537.8M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Coty Inc. (COTY) generated $348.2M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Coty Inc. (COTY) spent $189.6M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Coty Inc. (COTY) returned $13.2M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
License renewal and leverage
Metrics are mathematically derived from official filings.
Earnings Quality Obscured by Volatility
According to recent SEC filings, Coty's operating cash flow to net income ratio has exhibited extreme instability, ranging from a negative 44.74 in 2024Q3 to a positive 19.60 in 2025Q2, suggesting that reported net income is a poor proxy for the company's actual cash-generating capacity.
The wide divergence between net income and operating cash flow indicates that non-cash charges and significant working capital swings are masking the underlying cash reality. Investors should monitor whether these fluctuations represent temporary accounting timing differences or a structural inability to convert accounting profits into tangible liquidity.
Free Cash Flow Margin Instability
As reported in financial statements, Coty's free cash flow margins have swung violently between a negative 19.4% in 2026Q3 and a positive 30.6% in 2026Q2, highlighting a lack of consistent cash generation that complicates the company's ability to service its debt obligations.
The erratic nature of free cash flow suggests that the business is highly sensitive to seasonal working capital requirements and the timing of large-scale marketing investments. This volatility may indicate that the company lacks the operational maturity to produce reliable, self-sustaining cash flows across different fiscal quarters.
Working Capital Cycles Impair Liquidity
Based on the provided quarterly data, working capital changes have been a major source of cash flow volatility, with a significant outflow of $131.6 million in 2026Q3 following a massive $316.9 million inflow in 2026Q2, reflecting inconsistent efficiency in managing inventory and trade receivables.
These dramatic swings in working capital suggest that the company may be aggressively managing its supply chain or retail channel inventory to meet short-term targets. Such behavior warrants further investigation, as it may indicate that the company is pulling forward future demand or struggling to align production with actual sell-through.
Capital Intensity Remains Relatively Stable
Data from recent filings shows that Coty's capital expenditure as a percentage of revenue has remained relatively contained, fluctuating between 2.8% and 4.6% over the last ten quarters, suggesting that the company is not currently engaged in a massive, capital-intensive infrastructure expansion project.
While the capital intensity appears manageable, the persistent need for maintenance capex in a business model reliant on third-party licenses may limit the company's flexibility. Analysts should consider whether this level of investment is sufficient to maintain the competitive relevance of its manufacturing and distribution assets in a rapidly evolving beauty market.