Analog Devices Inc (ADI)

Payables turnover

		Nov 2, 2024	Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020
Cost of revenue (ttm)	US$ in thousands	5,974,280	6,252,990	6,455,060	6,691,720	6,859,590	6,865,370	6,924,720	6,838,480	7,028,760	8,116,420	7,122,209	6,267,449	4,636,506	3,368,146	3,314,035	3,259,651	3,201,987	3,224,727	3,223,501	3,245,625
Payables	US$ in thousands	487,457	424,735	422,683	398,107	493,041	585,570	569,002	534,659	582,160	545,068	451,443	436,227	443,434	265,933	279,222	227,423	227,273	215,894	194,211	211,670
Payables turnover		12.26	14.72	15.27	16.81	13.91	11.72	12.17	12.79	12.07	14.89	15.78	14.37	10.46	12.67	11.87	14.33	14.09	14.94	16.60	15.33

November 2, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,974,280K ÷ $487,457K
= 12.26

Analog Devices Inc's payables turnover has shown fluctuations over the recorded periods. The payables turnover ratio measures how efficiently a company pays its suppliers by indicating how many times the company pays off its accounts payable during a certain period.

Analyzing the data, we observe that the payables turnover ratio has ranged from a low of 10.46 to a high of 16.81, with an average value of approximately 13.93. This indicates that, on average, Analog Devices Inc pays its accounts payable almost 14 times a year.

A higher payables turnover ratio generally suggests that a company is effectively managing its payables by paying off its suppliers more frequently. This may indicate strong supplier relationships and potential negotiating power for better terms.

Conversely, a lower payables turnover ratio could imply that the company is taking longer to pay its suppliers, potentially signaling liquidity issues or strained relationships with suppliers.

It's important to note that payables turnover ratios should be considered in conjunction with other financial metrics to gain a comprehensive understanding of a company's financial performance and operational efficiency.