Agilysys Inc (AGYS)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	223,079	186,936	159,572	162,648	221,122
Payables	US$ in thousands	9,422	9,418	9,766	6,346	13,403
Payables turnover		23.68	19.85	16.34	25.63	16.50

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $223,079K ÷ $9,422K
= 23.68

The payables turnover ratio of Agilysys Inc has shown variability over the past five years. In the most recent period ending on March 31, 2024, the company's payables turnover ratio was 23.68, which indicates that Agilysys Inc converted its accounts payable approximately 23.68 times during the year. This represents an improvement compared to the previous years, where the payables turnover ratios were 19.85 in 2023, 16.34 in 2022, 25.63 in 2021, and 16.50 in 2020.

A higher payables turnover ratio generally suggests that the company is efficiently managing its accounts payable by paying off its suppliers more frequently within a given period. This could imply better working capital management and potentially stronger relationships with its suppliers, leading to favorable terms or discounts.

However, the significant fluctuations in Agilysys Inc's payables turnover ratio over the years may also indicate changes in the company's payment policies, its relationships with suppliers, or variations in business operations. Further analysis and comparison with industry benchmarks or peers would provide more insights into the effectiveness of Agilysys Inc's payables management.