Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', COTY's return on equity was -5.2%, measuring profitability for shareholders. Industry average for Package Goods/Cosmetics in '2021' stood at 8.4%.
• In '2022', COTY's return on equity was 7.2%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Package Goods/Cosmetics in '2022' stood at 1.1%. Industry average declined by 7.4% from previous year.
• In '2023', COTY's return on equity was 14.0%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Package Goods/Cosmetics in '2023' stood at 6.4%. Industry average increased by 5.3% compared to previous year.
• In '2024', COTY's return on equity was 2.3%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Package Goods/Cosmetics in '2024' stood at 43.7%. Industry average increased by 37.3% compared to previous year.
Overall, COTY's return on equity has been volatile but showed an upward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.