Coty Inc (COTY)

Number of days of payables

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Payables turnover 1.10 1.67 1.58 1.67 1.58 1.75 1.49 1.53 1.39 1.39 1.27 1.57 1.53 1.49 1.35 1.54 1.60 1.69 1.73 2.10
Number of days of payables days 332.94 218.78 231.00 219.15 230.42 208.07 244.58 238.49 262.76 263.37 286.80 232.36 239.22 244.69 270.89 236.57 228.62 216.07 210.43 174.09

June 30, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.10
= 332.94

The analysis of Coty Inc.'s number of days of payables over the period from September 2020 to June 2025 reveals notable fluctuations and trends. At the outset, as of September 30, 2020, the company's payables period stood at approximately 174 days, signaling a relatively prompt payment cycle. Over the subsequent quarters, this metric exhibited a consistent upward trend, reaching a peak of around 332.94 days by June 2025.

Between September 2020 and March 2021, the payables period increased steadily, indicating a gradual extension in the time taken by the company to settle its Payables. The progression continued more markedly after June 2021, with notable increases by December 2021, reaching approximately 270.89 days. This indicates a significant extension of the payment period, potentially reflecting strategic cash management, supplier negotiation leverage, or possible liquidity constraints.

From early 2022 onwards, the payables days experienced periodic fluctuations, with some declines (e.g., March 2022 at around 244.69 days, September 2022 at approximately 232.36 days) but generally remaining elevated compared to initial levels. The value spiked again in December 2022 to nearly 287 days, suggesting a deliberate extension of payment cycles.

The trend persisted into 2023, with the period reducing somewhat but maintaining a high level overall, and reaching approximately 263 days in March 2023. Into 2024, the number of days decreased to about 208 days by March 2024, indicating a possible effort to shorten payables, before increasing again in subsequent quarters to around 231 days by December 2024.

The most significant jump is observed in the forecasted data for June 2025, with the payables period surging to approximately 333 days. This marked extension could imply strategic delay in Payments, potential liquidity management challenges, or changes in supplier credit terms.

Overall, over this multi-year span, Coty Inc. has experienced substantial variability in its days of payables, with a trend towards longer payment cycles in the periods observed. The pronounced peaks and troughs suggest active management of trade payables in response to business needs, liquidity considerations, or supplier negotiations. The considerable increase in the latest forecasted period indicates an inclination towards delaying payments significantly, which could have implications for supplier relationships and the company's short-term liquidity position.