Coty Inc (COTY)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	139.96	122.62	119.48	129.59	125.26	126.45	129.65	146.59	155.22	149.32	138.27	127.81	124.77	122.89	114.43	126.82	127.59	124.22	114.14	116.62
Days of sales outstanding (DSO)	days	32.60	34.83	35.62	41.77	28.73	—	30.38	—	40.25	27.24	30.06	33.12	29.92	33.65	36.70	50.77	27.43	35.20	41.93	34.26
Number of days of payables	days	332.94	218.78	231.00	219.15	230.42	208.07	244.58	238.49	262.76	263.37	286.80	232.36	239.22	244.69	270.89	236.57	228.62	216.07	210.43	174.09
Cash conversion cycle	days	-160.38	-61.33	-75.90	-47.80	-76.43	-81.63	-84.54	-91.90	-67.29	-86.81	-118.47	-71.43	-84.53	-88.15	-119.75	-58.98	-73.59	-56.64	-54.36	-23.21

June 30, 2025 calculation

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

The cash conversion cycle (CCC) of Coty Inc. exhibits a consistent trend of negative values over the analyzed period, indicating that the company generally collects receivables and remits payables at such timings that its cash flows are augmented rather than constrained.

Between September 30, 2020, and June 30, 2021, the CCC remained negatively skewed, with values progressing from approximately -23.21 days to -73.59 days. This extension signifies an increasing period whereby the company's payables delay outweigh the collection period, resulting in a more favorable net cash position relative to its operational cycle.

The period from September 30, 2021, through December 31, 2022, saw significant fluctuations, with the CCC reaching as low as -119.75 days in December 2021. The steep negative shift indicates that Coty was extending its payable obligations relative to its receivables and inventory turnover, thereby prolonging the period during which cash is effectively held or generated prior to outflows.

In the subsequent period into 2023, the CCC displayed some narrowing, with values such as -86.81 days on March 31, 2023, and -67.29 days on June 30, 2023. This trend reflects a partial reduction in the extent of payables deferral or a faster collection cycle, albeit the CCC remained substantially negative, maintaining an operational profile where cash inflows precede outflows.

By September 30, 2023, the CCC was recorded at approximately -91.90 days, indicating a stabilization around previous levels. Moving into early 2024, the CCC fluctuated slightly but maintained a negative orientation, with moderate variances around -75 days.

However, the most notable change appears in the period ending June 30, 2025, where the CCC surged to -160.38 days. This significant deviation suggests an extraordinary extension of the payable period relative to receivables and inventory turnover, potentially reflecting strategic shifts, payment deferrals, or operational adjustments that dramatically increased the days during which cash remains within the company's account before outflow.

Overall, the data demonstrates that Coty Inc. maintains a persistently negative cash conversion cycle, characteristic of a business model that emphasizes early or delayed payment of suppliers relative to receivables collection. While this operational approach enhances liquidity position temporarily, fluctuations—especially the recent extreme prolongation—warrant monitoring to assess the sustainability and potential impacts on supplier relationships and operational efficiency.