Agilent Technologies Inc (A)
Payables turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,484,000 | 4,987,000 | 4,776,000 | 4,332,000 | 3,994,000 |
| Payables | US$ in thousands | 418,000 | 580,000 | 446,000 | 354,000 | 354,000 |
| Payables turnover | 13.12 | 8.60 | 10.71 | 12.24 | 11.28 |
October 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,484,000K ÷ $418,000K
= 13.12
The payables turnover ratio for Agilent Technologies Inc. has shown fluctuations over the past five years. The ratio increased to 8.06 in October 2023 from 5.39 in October 2022, indicating an improvement in the company's ability to manage its accounts payable. This suggests that Agilent Technologies Inc. is paying its suppliers more frequently relative to the cost of goods sold, which could signify effective cash management and potentially favorable relationships with suppliers. However, it's important to note that a very high payables turnover ratio may also indicate aggressive payables management or strained supplier relationships. Overall, the trend in Agilent Technologies Inc.'s payables turnover ratio suggests a more efficient management of its accounts payable over the past five years.
Peer comparison
Oct 31, 2023