Coty Inc (COTY)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 13.22 | 13.92 | 11.37 | 7.81 | 9.02 | |
| DSO | days | 27.61 | 26.21 | 32.10 | 46.71 | 40.48 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.22
= 27.61
The days of sales outstanding (DSO) for Coty Inc have shown fluctuating trends over the past five years. In particular, there has been a notable improvement in the efficiency of collecting accounts receivable from customers.
As of June 30, 2024, Coty Inc's DSO stands at 27.61 days, a decrease from 26.21 days in the previous year. This indicates that the company is collecting its accounts receivable more quickly, which can be a positive sign of effective credit management and improved cash flow.
Comparing to 2021 and 2022, where the DSO was 46.71 days and 32.10 days respectively, the current DSO of 27.61 days reflects a significant enhancement in the company's ability to convert credit sales into cash.
In the context of industry benchmarks and best practices, a lower DSO is generally favorable as it signifies that the company is efficient in converting outstanding sales into cash, thereby improving liquidity and reducing the risk of bad debts.
Overall, the decreasing trend in Coty Inc's DSO over the years indicates an improvement in the company's accounts receivable management and efficiency in collecting payments from customers.
Peer comparison
Jun 30, 2024