Coty Inc (COTY)

Payables turnover

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
Cost of revenue (ttm) US$ in thousands 2,072,000 2,135,100 2,156,200 2,204,000 2,226,600 2,192,900 2,183,200 2,105,000 2,006,800 1,950,900 1,895,900 1,931,700 1,935,200 1,910,100 1,878,700 1,901,600 1,861,700 1,776,800 2,002,200 2,277,500
Payables US$ in thousands 1,890,000 1,279,800 1,364,600 1,323,300 1,405,600 1,250,100 1,462,900 1,375,400 1,444,700 1,407,700 1,489,700 1,229,700 1,268,300 1,280,500 1,394,300 1,232,500 1,166,100 1,051,800 1,154,300 1,086,300
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

June 30, 2025 calculation

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

The analysis of Coty Inc.'s payables turnover ratio over the period from September 30, 2020, through June 30, 2025, reveals notable fluctuations indicative of changes in the company's accounts payable management and operational liquidity.

Initially, the ratio was relatively high at 2.10 as of September 30, 2020, suggesting that the company was paying its suppliers more quickly during this period. Subsequently, a consistent decline is observed through December 31, 2021, reaching a low of 1.35, which indicates an elongation in the average payment period to suppliers, potentially reflecting deliberate strategic credit extensions, cash flow management adjustments, or supply chain considerations.

From this trough, the ratio exhibits a modest recovery trend starting in March 2022, rising to 1.57 by September 2022 and peaking again at 1.75 in March 2024. This upward movement suggests that Coty Inc. has been accelerating its payables payments relative to prior periods, possibly driven by improvements in liquidity, renegotiation of terms with suppliers, or alignment with inventory and operational needs.

Conversely, the ratio demonstrates some variability in the latter half of the observed period, with slight declines and fluctuations, including a notable decrease to 1.10 in June 2025. This sharp decline might imply a strategic extension of payment periods in response to financial optimization initiatives or market conditions, or could reflect delays in payment or supply chain challenges.

Overall, the trend illustrates a phase of initial quick payments, a subsequent elongation of payables periods, followed by a gradual normalization and occasional fluctuations. These patterns can be indicative of Coty Inc.'s evolving approach to working capital management, balancing payment terms with operational requirements, and responding to external financial conditions.