Adient PLC (ADNT)

Payables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	13,760,000	14,362,000	13,314,000	12,854,000	12,078,000
Payables	US$ in thousands	2,552,000	2,526,000	2,478,000	2,130,000	2,179,000
Payables turnover		5.39	5.69	5.37	6.03	5.54

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $13,760,000K ÷ $2,552,000K
= 5.39

The payables turnover ratio for Adient PLC has exhibited fluctuations over the past five years. The ratio indicates the number of times a company pays off its accounts payable during a specific period, reflecting how efficiently the company manages its payables.

In Sep 30, 2024, the payables turnover ratio decreased to 5.39 from 5.69 in Sep 30, 2023. This suggests that in 2024, Adient PLC took longer to pay off its accounts payable compared to the previous year. Despite the decrease, the ratio remains relatively high, indicating that the company is still efficiently managing its payables.

Comparing the current ratio to earlier years, it is below the 6.03 recorded in Sep 30, 2021. This indicates that in 2024, Adient PLC took slightly longer to settle its payables compared to the year when it had the highest turnover.

Over the five-year period, the payables turnover ratio has generally remained above 5, which suggests that Adient PLC has been consistent in managing its payables efficiently. The slight fluctuations in the ratio from year to year may be influenced by various factors such as changes in payment terms with suppliers, company's cash flow position, or changes in the industry dynamics.

Overall, the trend in Adient PLC's payables turnover ratio indicates a relatively stable and effective management of its accounts payable, with the company consistently paying off its obligations within a reasonable timeframe.