Coty Inc (COTY)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	6,129,300	5,842,100	5,747,100	5,543,100	5,305,100	5,172,900	5,066,800	5,119,200	5,116,200	4,950,500	4,805,300	4,646,500	4,372,000	3,431,200	3,904,600	4,821,500	5,727,000	7,738,400	8,200,500	8,367,100
Property, plant and equipment	US$ in thousands	718,900	703,400	705,900	689,500	712,900	697,200	688,700	668,600	715,500	740,300	772,700	847,100	918,100	942,600	1,012,400	1,051,200	1,081,600	1,355,900	1,461,700	1,469,900
Fixed asset turnover		8.53	8.31	8.14	8.04	7.44	7.42	7.36	7.66	7.15	6.69	6.22	5.49	4.76	3.64	3.86	4.59	5.29	5.71	5.61	5.69

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,129,300K ÷ $718,900K
= 8.53

Fixed asset turnover is a key financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is more effective in using its fixed assets to generate sales.

For Coty Inc, the fixed asset turnover ratio has been fluctuating over the past several quarters, ranging from a low of 3.64 to a high of 8.53. The trend shows an increasing level of efficiency in utilizing fixed assets between the end of 2019 and mid-2024.

The highest fixed asset turnover ratio of 8.53 in June 2024 indicates that Coty Inc generated $8.53 in sales for every dollar invested in fixed assets. This suggests an efficient use of fixed assets to drive revenue during that period.

Overall, the increasing trend in fixed asset turnover suggests that Coty Inc has been improving its operational efficiency in utilizing its fixed assets to generate sales over the analyzed period. However, it is essential to consider other factors and trends in conjunction with the fixed asset turnover ratio to gain a comprehensive understanding of the company's financial performance.