Analog Devices Inc (ADI)
Payables turnover
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,862,620 | 8,036,360 | 4,636,510 | 3,201,990 | 3,291,640 |
| Payables | US$ in thousands | 493,041 | 582,160 | 443,434 | 227,273 | 225,270 |
| Payables turnover | 15.95 | 13.80 | 10.46 | 14.09 | 14.61 |
October 28, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,862,620K ÷ $493,041K
= 15.95
The payables turnover ratio measures how efficiently a company manages its accounts payable. Analog Devices Inc.'s payables turnover has shown a positive trend over the past five years. The ratio increased from 8.78 in 2019 to 8.98 in 2023, indicating an improvement in the company's ability to pay off its suppliers. This suggests that Analog Devices Inc. is managing its trade credit effectively, possibly negotiating better payment terms or enhancing its working capital management. Overall, the increasing payables turnover ratio reflects the company's efficient use of its accounts payable, which is a positive indication of its financial strength and management effectiveness.
Peer comparison
Oct 28, 2023