Coty Inc (COTY)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	5,458,300	5,348,900	5,286,500	5,119,900	4,895,200	4,861,100	4,741,600	4,745,900	4,901,500	4,777,200	4,654,100	4,671,900	4,463,500	3,391,700	4,139,600	5,070,900	5,842,500	10,617,300	10,771,700	11,809,800
Inventory	US$ in thousands	764,100	759,700	775,500	845,400	853,400	798,100	718,200	676,400	661,500	643,100	589,000	660,700	650,800	604,700	626,100	727,700	678,200	959,900	1,015,800	1,150,800
Inventory turnover		7.14	7.04	6.82	6.06	5.74	6.09	6.60	7.02	7.41	7.43	7.90	7.07	6.86	5.61	6.61	6.97	8.61	11.06	10.60	10.26

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,458,300K ÷ $764,100K
= 7.14

The inventory turnover ratio for Coty Inc has shown some fluctuations over the recent quarters. The ratio measures how efficiently the company is managing its inventory by indicating how many times in a year the company sells and replaces its inventory.

From December 2019 to September 2020, the inventory turnover ratio steadily increased from 10.26 to 8.61, indicating that Coty Inc was turning over its inventory more frequently during this period. However, starting from December 2020, the ratio began to fluctuate, with some quarters showing higher turnover rates (e.g., 7.90 in December 2020 and 7.41 in June 2021) and others showing lower turnover rates (e.g., 5.61 in March 2021).

In the most recent quarter, ending June 2024, the inventory turnover ratio was 7.14, which indicates that Coty Inc is turning over its inventory approximately 7 times a year. This suggests a moderate level of efficiency in managing inventory compared to previous quarters.

Overall, while Coty Inc's inventory turnover has shown some variability, it is essential for the company to continuously monitor and assess its inventory management practices to ensure optimal performance and efficiency in utilizing its inventory resources.