COTY
Coty Inc.
Is COTY Halal?
Global beauty company (fragrances, cosmetics, skincare) — selling cosmetics is permissible, but a large interest-bearing debt load keeps the leverage screen the binding concern.
What You Should Know
Coty Inc. is a global beauty company that makes and sells fragrances, color cosmetics, and skin and body care through Prestige and Consumer Beauty segments. Selling cosmetics is generally permissible, but alcohol-containing fragrance formulations, licensing, marketing and product-level treatment remain qualitative and school-dependent. Its March 31, 2026 Form 10-Q reports $10,228.9 million of assets, $3,171.5 million of short- and long-term debt, $257.1 million of cash, $565.2 million of trade receivables and $1,281.6 million of quarterly net revenue. Debt/assets is 31.01%, below the displayed 33.333% limit; liquidity and receivables-plus-cash also pass. The filing reports $4.7 million of interest income for the quarter, or 0.37% of revenue.
⚠️ Concerns
- •Debt/assets is 31.01% ($3,171.5 million / $10,228.9 million), below the displayed asset-based limit but still material
- •Cash/assets is 2.51% and receivables-plus-cash/assets is 8.04%
- •Fragrance formulation, licensing and marketing treatment can differ by scholar and is not quantified as a universal prohibited-revenue numerator
- •Interest income/revenue is 0.37%; follow the chosen purification guidance
- •The result may change with deleveraging, impairment, portfolio changes or a newer filing
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
3,171.5 / 10,228.9
257.1 / 10,228.9
822.3 / 10,228.9
4.7 / 1,281.6
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 31.01%, liquidity/assets is 2.51%, receivables plus cash/assets is 8.04% and interest income/revenue is 0.37%; known financial ratios pass, but activity treatment remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Known debt, liquidity and receivables-plus-cash ratios pass the examined total-assets limits; fragrance and product activity remain unclassified.
- Financial
- Pass
- Overall
- Incomplete
Known financial ratios pass the examined limits; this is not an official SAC classification and product activity remains incomplete.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored and qualitative activity treatment remains incomplete.
Business-activity disclosure
Coty sells fragrances, color cosmetics, skincare and body care through Prestige and Consumer Beauty segments. Cosmetics are generally permissible at the activity level, while fragrance formulation, licensing, marketing and product presentation can be treated differently by scholars.
Limitation: The filing does not provide a reproducible prohibited-revenue numerator for alcohol-containing formulations, licensing, marketing or product-level activity.
Purification
Coty discloses $4.7 million of interest income, or 0.37% of quarterly revenue, but no scholar-approved fixed purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions from Coty's March 31, 2026 Form 10-Q.
- Debt combines $2.1 million of short-term/current debt and $3,169.4 million of long-term debt, net; operating leases are excluded.
- Cash and cash equivalents are $257.1 million; no separate interest-bearing securities balance is identified.
- Trade receivables are $565.2 million and quarterly net revenue is $1,281.6 million.
- The filing reports $4.7 million of interest income for the quarter; fragrance, licensing and product-level revenue are not classified by a universal Sharia numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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