Coty(Coty) Financials: Receivables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - receivables turnover
This chart shows the historical trend of receivables turnover for COTY compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Receivables Turnover
Definition: Receivables turnover tells you how quickly the company collects payments from customers after making sales on credit. A high turnover means customers pay on time and cash flows smoothly. Slow turnover suggests delayed collections, which can create cash shortages and financing stress.
Interpretation:
• In '2021', COTY's receivables turnover was 6.71, showing efficiency in collecting outstanding receivables. Industry average for Package Goods/Cosmetics in '2021' stood at 6.32.
• In '2022', COTY's receivables turnover was 8.06, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Package Goods/Cosmetics in '2022' stood at 5.70. Industry average declined by 0.62 from previous year.
• In '2023', COTY's receivables turnover was 8.97, showing efficiency in collecting outstanding receivables. The increase since '2022' reflects strengthening financial performance. Industry average for Package Goods/Cosmetics in '2023' stood at 4.91. Industry average declined by 0.79 from previous year.
• In '2024', COTY's receivables turnover was 9.30, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Package Goods/Cosmetics in '2024' stood at 5.49. Industry average increased by 0.58 compared to previous year.
Overall, COTY's receivables turnover has been volatile but showed an upward trend over the past 4 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.