Coty Inc (COTY)

Receivables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	6,119,900	5,281,400	5,118,600	4,115,500	4,449,400
Receivables	US$ in thousands	463,000	379,300	450,100	526,700	493,500
Receivables turnover		13.22	13.92	11.37	7.81	9.02

June 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $6,119,900K ÷ $463,000K
= 13.22

The receivables turnover ratio for Coty Inc has fluctuated over the past five years. In 2024, the ratio stands at 13.22, showing a slight decrease from the previous year's 13.92. This implies that the company collects its accounts receivable approximately 13.22 times during the year, indicating that it is efficient in converting credit sales into cash.

Comparing the current ratio to two years prior, we see a noticeable improvement from 11.37 in 2022 to 13.22 in 2024. This suggests that Coty Inc has enhanced its collection efforts and is managing its accounts receivable more effectively.

The receivables turnover ratio in 2021 was 7.81, indicating a relatively lower turnover rate compared to the subsequent years. However, it improved significantly in 2022 and has since remained relatively stable.

In 2020, the receivables turnover ratio was 9.02, which was lower than the ratios observed in the most recent years. This suggests that Coty Inc has improved its receivables management practices over the years. Overall, the trend in the receivables turnover ratio reflects the company's efforts to efficiently manage its accounts receivable and convert them into cash.