Coty Inc (COTY)

Inventory turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	2,072,000	2,178,800	2,006,800	1,935,200	1,861,700
Inventory	US$ in thousands	794,500	764,100	853,400	661,500	650,800
Inventory turnover		2.61	2.85	2.35	2.93	2.86

June 30, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,072,000K ÷ $794,500K
= 2.61

The inventory turnover ratio for Coty Inc. has demonstrated fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio was 2.86, indicating that the company replenished its inventory approximately 2.86 times during the fiscal year. This ratio experienced a slight increase in 2022, reaching 2.93, which suggests a marginal improvement in inventory management efficiency or sales activity relative to inventory levels.

However, a notable decline occurred by June 30, 2023, when the ratio decreased to 2.35, signaling a reduction in inventory turnover rate. This decline could imply an accumulation of inventory, decreased sales velocity, or potential challenges in inventory liquidation during that period. Subsequent to this low point, the ratio recovered somewhat by June 30, 2024, rising to 2.85, nearly returning to the levels observed in 2021 and 2022. This rebound indicates an improvement in inventory management or sales performance, aligning with previous turnover levels.

By June 30, 2025, the ratio slightly declined again to 2.61, reflecting a modest decrease in inventory turnover relative to the previous year. Overall, the trend suggests periods of fluctuation with a significant dip in 2023 followed by partial recovery. These variations highlight the importance of monitoring inventory management practices and sales efficiency as they directly impact the company's working capital and overall operational performance.