Coty Inc (COTY)

Cash conversion cycle

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Days of inventory on hand (DOH)	days	139.96	128.00	155.22	124.77	127.59
Days of sales outstanding (DSO)	days	32.60	28.73	40.25	29.92	27.43
Number of days of payables	days	332.94	235.47	262.76	239.22	228.62
Cash conversion cycle	days	-160.38	-78.73	-67.29	-84.53	-73.59

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 139.96 + 32.60 – 332.94
= -160.38

The provided data offers a view of Coty Inc's cash conversion cycle (CCC) across a five-year period from June 30, 2021, to June 30, 2025. The CCC measures the time span, in days, between the company's outlay of cash for inventory and the collection of cash from sales, with negative values indicating a flow where the company collects cash from sales before paying its suppliers.

In June 2021, the CCC stood at approximately -73.59 days, suggesting that Coty Inc effectively managed its working capital by generating cash from sales well before settling its payables. The cycle further improved in June 2022, reaching approximately -84.53 days, indicating an increased efficiency in converting sales into cash relative to its payables management.

However, over the subsequent years, fluctuations are observed. By June 2023, the CCC slightly decreased to -67.29 days, reflecting a short-term reduction in the company's efficiency in this regard. In June 2024, the CCC increased again to -78.73 days, regaining some of the earlier efficiency gains.

The most notable change appears in June 2025, where the CCC sharply extends to approximately -160.38 days. This substantial increase implies that Coty Inc is generating cash from sales significantly earlier relative to its payments to suppliers, possibly due to improved receivables collection, extended payment terms, or supply chain efficiencies.

Overall, the data indicates that Coty Inc has maintained predominantly negative CCC values over the period, demonstrating a generally strong cash flow efficiency. The observed trend suggests variability in operational or financial policies affecting how quickly the company collects receivables and manages payables, with a pronounced improvement in 2025 resulting in an even more aggressive cash collection framework relative to payables.