Analog Devices Inc (ADI)

Payables turnover

		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	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Cost of revenue (ttm)	US$ in thousands	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	3,291,647	2,027,330	2,042,629
Payables	US$ in thousands	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	225,270	220,230	208,243
Payables turnover		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	14.61	9.21	9.81

February 3, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,691,720K ÷ $398,107K
= 16.81

Analog Devices Inc.'s payables turnover ratio measures its efficiency in managing its accounts payable by analyzing how many times the company pays off its suppliers in a given period.

Looking at the historical trend, we observe that the payables turnover ratio has fluctuated over the last 8 quarters. In Q1 2024, the payables turnover ratio was 10.91, showing an improvement from the previous quarter. This indicates that Analog Devices is more efficient in paying off its suppliers relative to the amount of purchases made during the quarter.

Comparing Q1 2024 to the same quarter in the previous year (Q1 2023), we see a significant increase in the payables turnover ratio from 8.09 to 10.91. This suggests that Analog Devices has enhanced its payment efficiency over the year.

The payables turnover ratio for Analog Devices Inc. has been relatively stable over the past two years, ranging from 7.62 to 10.91. This indicates that the company is effectively managing its accounts payable with consistency.

Overall, the increasing trend in the payables turnover ratio for Analog Devices Inc. indicates an improvement in its efficiency in paying off suppliers, which could positively impact the company's liquidity and relationship with vendors.