Coty Inc (COTY)

Days of inventory on hand (DOH)

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Inventory turnover 2.61 2.85 2.35 2.93 2.86
DOH days 139.96 128.00 155.22 124.77 127.59

June 30, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.61
= 139.96

The days of inventory on hand (DOH) for Coty Inc. demonstrate notable fluctuations over the observed period from 2021 to 2025. As of June 30, 2021, the company maintained an inventory holding period of approximately 127.59 days, indicating the average number of days it took to sell its inventory. This duration slightly decreased to 124.77 days by June 30, 2022, reflecting a marginal improvement in inventory turnover efficiency.

However, there was a significant shift by June 30, 2023, when the DOH increased markedly to 155.22 days. This elevation suggests a substantial slowdown in inventory turnover, which could be attributed to factors such as excess inventory accumulation, slower sales, or potential shifts in product demand. Following this peak, the DOH declined again to 128.00 days by June 30, 2024, indicating a partial recovery in inventory management, aligning more closely with the level observed in 2021.

In the most recent period analyzed, June 30, 2025, the DOH rose again to 139.96 days, signaling a slight increase in the duration it takes to convert inventory into sales. This variation over the years underscores ongoing fluctuations in inventory management practices or market conditions affecting Coty's ability to efficiently turnover its stock.

Overall, the trend highlights periods of both improved and diminished inventory efficiency, with the peak in 2023 representing a potential concern regarding inventory buildup or declining sales velocity. The subsequent reduction in DOH suggests efforts to optimize inventory levels, though the 2025 figure indicates that inventory turnover remains relatively prolonged compared to the initial years, which could impact cash flow and operational efficiency if such trends persist.