Coty Inc (COTY)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	5,571,300	5,010,600	5,050,600	4,629,400	6,046,600
Inventory	US$ in thousands	764,100	853,400	661,500	650,800	678,200
Inventory turnover		7.29	5.87	7.64	7.11	8.92

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,571,300K ÷ $764,100K
= 7.29

The inventory turnover ratio for Coty Inc has fluctuated over the past five years. In the most recent fiscal year ending June 30, 2024, the company's inventory turnover ratio was 7.29, indicating that on average, Coty Inc sold and replaced its inventory approximately 7.29 times during that year.

Comparing this to the previous years, we see that the inventory turnover ratio was 5.87 in 2023, 7.64 in 2022, 7.11 in 2021, and 8.92 in 2020. This fluctuation suggests variability in the efficiency of Coty Inc's inventory management over the years.

A high inventory turnover ratio generally indicates that a company is selling its products quickly and efficiently, which can be a positive sign of effective inventory management. Conversely, a lower ratio may suggest overstocking or slower sales, potentially leading to higher storage costs or inventory obsolescence.

Overall, the trend in Coty Inc's inventory turnover ratio shows some variability but generally indicates that the company has been effectively managing its inventory and selling its products efficiently in recent years. Further analysis and comparison with industry benchmarks may provide additional insights into the company's inventory management performance.