Apple Inc (AAPL)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 239,069,000 | 248,640,000 | 234,954,000 | 189,475,000 | 180,027,000 |
| Payables | US$ in thousands | 62,611,000 | 64,115,000 | 54,763,000 | 42,296,000 | 46,236,000 |
| Payables turnover | 3.82 | 3.88 | 4.29 | 4.48 | 3.89 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $239,069,000K ÷ $62,611,000K
= 3.82
The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating the number of times a company pays off its average accounts payable balance during a specific period.
From the provided data, we observe a declining trend in Apple Inc's payables turnover ratio over the last five years, decreasing from 4.01 in September 2020 to 3.42 in September 2023. This decline may indicate a lengthening of the time it takes for Apple to pay its suppliers or a slowing down in its payment cycle.
A decreasing payables turnover ratio could potentially signify that Apple is taking longer to pay its suppliers, which could be a strategic move to optimize its cash flow or negotiate more favorable payment terms. However, it's important to note that a low ratio could also indicate liquidity issues or strained relationships with suppliers if not managed effectively.
Overall, while a declining payables turnover ratio may signal a change in Apple's payment practices, it is essential to consider this trend in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's financial performance and supplier management.
Peer comparison
Sep 30, 2023