Coty Inc (COTY)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 13.24 | 12.17 | 11.49 | 10.36 | 13.99 | 12.91 | 11.68 | 10.60 | 11.37 | 10.33 | 9.48 | 8.97 | 8.30 | 8.62 | 7.34 | 9.24 | 11.60 | 9.17 | 7.39 | 8.07 | |
| DSO | days | 27.57 | 29.98 | 31.77 | 35.22 | 26.10 | 28.28 | 31.25 | 34.44 | 32.11 | 35.33 | 38.50 | 40.68 | 43.97 | 42.35 | 49.70 | 39.49 | 31.45 | 39.82 | 49.41 | 45.22 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.24
= 27.57
Days Sales Outstanding (DSO) is a metric used to evaluate how efficiently a company is able to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally favorable as it improves cash flow and liquidity. Conversely, a higher DSO may indicate potential issues with collections or credit management.
Examining the DSO trend for Coty Inc over the past several quarters, we observe fluctuations in the number of days it takes for the company to collect its accounts receivable. In the most recent quarter, ending June 30, 2024, the DSO was 27.57 days, which was lower compared to the previous quarter at 29.98 days. This suggests that Coty Inc improved its efficiency in collecting payments from customers during the period.
Looking at a longer historical perspective, we see that the DSO for Coty Inc has ranged from 26.10 days to 49.70 days over the past few years. The company experienced a spike in DSO in the fourth quarter of 2020 and the first quarter of 2021, which may indicate challenges in collecting payments during those periods.
Overall, while the recent decrease in DSO is a positive sign for Coty Inc in terms of managing its accounts receivable, it is important to monitor future trends to ensure that the company maintains efficient collections and cash flow management practices.
Peer comparison
Jun 30, 2024