Coty Inc (COTY)

Payables 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
Payables	US$ in thousands	1,890,000	1,405,600	1,444,700	1,268,300	1,166,100
Payables turnover		1.10	1.55	1.39	1.53	1.60

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,072,000K ÷ $1,890,000K
= 1.10

The payables turnover ratio for Coty Inc over the specified periods exhibits notable fluctuations, reflecting changes in the company's management of its trade payables relative to its cost of goods sold (COGS).

As of June 30, 2021, the payables turnover stood at 1.60, indicating that the company settled its payables approximately 1.6 times within the fiscal year. This figure decreased slightly to 1.53 by June 30, 2022, suggesting a marginal lengthening in the average time taken to pay its suppliers. The downward trend continued into June 30, 2023, when the ratio declined further to 1.39, which could imply that Coty Inc was extending its payment periods or experiencing a relative slowdown in payables turnover.

However, a reversal of this trend is observed subsequently, with the ratio rising to 1.55 in June 30, 2024. This increase suggests an improvement in the company's ability or willingness to pay its suppliers more promptly or a restructuring of its payables management. Conversely, the ratio sharply decreases to 1.10 by June 30, 2025, indicating a significant extension in the payables period compared to previous years. This substantial decline could point towards strategic shifting of payment policies, possibly aiming to conserve cash, or signifying financial strain impacting the company's liquidity position.

In summary, the payables turnover ratio for Coty Inc shows a pattern of initial stability followed by a period of decline, then partial recovery, and ultimately a significant reduction in 2025. These shifts warrant careful analysis of the company's payment practices, liquidity management, and supplier relationships, as they can reflect underlying operational or financial strategies and health.