Coty Inc (COTY)

Cash conversion cycle

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Days of inventory on hand (DOH)	days	50.06	62.17	47.81	51.31	40.94
Days of sales outstanding (DSO)	days	27.61	26.21	32.10	46.71	40.48
Number of days of payables	days	92.09	105.24	91.66	91.94	71.85
Cash conversion cycle	days	-14.41	-16.86	-11.76	6.08	9.57

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 50.06 + 27.61 – 92.09
= -14.41

The cash conversion cycle of Coty Inc has shown some fluctuations over the past five years. The company's cash conversion cycle measures the time it takes to convert its investments in inventory and other resources into cash received from sales.

In Jun 2024, the cash conversion cycle was at -14.41 days, indicating that Coty Inc was able to convert its investments into cash quickly. This represents an improvement compared to the previous year, when the cycle was -16.86 days.

Looking back further, in Jun 2022, the company experienced a shorter cash conversion cycle of -11.76 days, showing efficient management of working capital. However, in the preceding years, the cycle was positive, suggesting a longer time taken to convert investments into cash. In Jun 2021, the cycle was 6.08 days, and in Jun 2020, it was 9.57 days.

Overall, the trend in Coty Inc's cash conversion cycle has been fluctuating, with some years showing more efficient working capital management than others. This metric is essential for assessing the company's liquidity and operational efficiency in managing its cash flows.