Coty Inc (COTY)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 13.24 | 12.17 | 11.49 | 10.36 | 13.99 | 12.91 | 11.68 | 10.60 | 11.37 | 10.33 | 9.48 | 8.97 | 8.30 | 8.62 | 7.34 | 9.24 | 11.60 | 9.17 | 7.39 | 8.07 |
| Payables turnover | 3.88 | 4.28 | 3.61 | 3.72 | 3.39 | 3.45 | 3.18 | 3.86 | 3.86 | 3.73 | 3.34 | 3.79 | 3.83 | 3.22 | 3.59 | 4.67 | 4.91 | 7.47 | 6.84 | 7.63 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1.46 | 1.97 | 13.18 | — | — |
Coty Inc's activity ratios provide insights into the efficiency with which the company manages its assets and liabilities to generate sales.
1. Inventory turnover: This ratio measures how many times inventory is sold and replaced during a specific period. Coty Inc's inventory turnover has been relatively stable and within the range of 5.61 to 7.43 over the past 5 quarters, indicating that the company efficiently manages its inventory levels.
2. Receivables turnover: This ratio reflects how quickly the company collects its receivables from customers. Coty Inc's receivables turnover has shown some fluctuations but generally ranged between 8.30 and 13.99 over the same period, indicating that the company effectively collects payments from customers.
3. Payables turnover: This ratio evaluates how quickly the company pays its suppliers. Coty Inc's payables turnover has varied between 3.18 and 7.63 over the past 5 quarters, suggesting some fluctuations in the company's payment practices but generally maintaining an efficient payment turnover.
4. Working capital turnover: This ratio measures how efficiently the company utilizes its working capital to generate sales. Unfortunately, there is missing data for this ratio in the table. However, it is critical for analyzing how well the company manages its current assets and liabilities to support revenue generation.
Overall, Coty Inc's activity ratios demonstrate a consistent management of inventory and collection of receivables, along with varying but generally efficient payment practices. The missing data for the working capital turnover ratio limits a comprehensive analysis of the company's overall efficiency in utilizing its working capital to drive sales.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.10 | 51.84 | 53.54 | 60.27 | 63.63 | 59.93 | 55.29 | 52.02 | 49.26 | 49.14 | 46.19 | 51.62 | 53.22 | 65.08 | 55.20 | 52.38 | 42.37 | 33.00 | 34.42 | 35.57 |
| Days of sales outstanding (DSO) | days | 27.57 | 29.98 | 31.77 | 35.22 | 26.10 | 28.28 | 31.25 | 34.44 | 32.11 | 35.33 | 38.50 | 40.68 | 43.97 | 42.35 | 49.70 | 39.49 | 31.45 | 39.82 | 49.41 | 45.22 |
| Number of days of payables | days | 93.99 | 85.30 | 101.00 | 98.05 | 107.72 | 105.70 | 114.67 | 94.57 | 94.45 | 97.84 | 109.35 | 96.29 | 95.36 | 113.19 | 101.78 | 78.19 | 74.36 | 48.89 | 53.36 | 47.85 |
Days of Inventory on Hand (DOH) measures how efficiently a company manages its inventory. A decreasing trend in DOH indicates that Coty Inc is selling its products more quickly and efficiently. However, in the recent periods, there has been a slight increase in DOH, suggesting potential inventory management challenges that need to be addressed.
Days of Sales Outstanding (DSO) reflects how quickly a company collects its accounts receivable. A decreasing trend in DSO indicates that Coty Inc is collecting payments from customers more promptly. The recent decrease in DSO implies improved efficiency in managing accounts receivable, which is a positive sign for the company's cash flow.
Number of Days of Payables reveals how long it takes a company to pay its suppliers. An increasing trend in this ratio suggests that Coty Inc is taking longer to pay its bills, potentially indicating better cash management strategies or potentially strained relationships with suppliers. The recent increase in the number of days of payables could be a positive sign for cost management, but it's essential to monitor the trend to ensure sustainable supplier relationships.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 8.53 | 8.31 | 8.14 | 8.04 | 7.44 | 7.42 | 7.36 | 7.66 | 7.15 | 6.69 | 6.22 | 5.49 | 4.76 | 3.64 | 3.86 | 4.59 | 5.29 | 5.71 | 5.61 | 5.69 |
| Total asset turnover | 0.51 | 0.47 | 0.44 | 0.44 | 0.42 | 0.41 | 0.41 | 0.43 | 0.42 | 0.37 | 0.36 | 0.33 | 0.32 | 0.25 | 0.28 | 0.27 | 0.34 | 0.42 | 0.47 | 0.48 |
Coty Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the company's efficiency in generating sales relative to its assets.
1. Fixed asset turnover:
- The fixed asset turnover ratio measures how efficiently the company generates sales from its fixed assets.
- Coty Inc's fixed asset turnover has shown an increasing trend from 3.64 in March 2021 to 8.53 in June 2024.
- A higher fixed asset turnover indicates that Coty Inc is utilizing its fixed assets effectively to generate revenue.
- The significant improvement in this ratio suggests that the company has become more efficient in utilizing its fixed assets to drive sales over the period under review.
2. Total asset turnover:
- The total asset turnover ratio reflects how effectively the company uses all its assets to generate revenue.
- Coty Inc's total asset turnover ratio has fluctuated but maintained an overall increasing trend, from 0.25 in March 2021 to 0.51 in June 2024.
- An increasing total asset turnover ratio indicates that the company is generating more revenue per unit of assets invested.
- The rising trend in this ratio suggests that Coty Inc has been successful in leveraging its assets efficiently to drive sales growth and improve overall performance.
In conclusion, the analysis of Coty Inc's long-term activity ratios reveals a positive trend in both fixed asset turnover and total asset turnover, indicating improved efficiency in utilizing assets to generate revenue over the period analyzed.