Agilysys Inc (AGYS)

Payables turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Cost of revenue (ttm)	US$ in thousands	74,415	99,460	96,496	94,951	94,309	89,978	86,380	81,237	77,246	75,397	70,997	66,257	61,104	55,095	52,830	50,399	47,798	54,944	63,388	72,687
Payables	US$ in thousands	12,388	11,684	12,746	10,085	9,422	9,012	10,069	10,544	9,418	9,752	10,428	8,185	9,766	8,035	9,009	7,388	6,346	5,435	3,176	4,439
Payables turnover		6.01	8.51	7.57	9.42	10.01	9.98	8.58	7.70	8.20	7.73	6.81	8.09	6.26	6.86	5.86	6.82	7.53	10.11	19.96	16.37

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $74,415K ÷ $12,388K
= 6.01

Agilysys Inc's payables turnover ratio provides insight into how efficiently the company manages its accounts payable. The payables turnover ratio is calculated by dividing the total purchases made in a period by the average accounts payable for the same period. A higher turnover ratio indicates that the company is paying its suppliers more frequently.

Analyzing the data provided, over the past few years, Agilysys Inc's payables turnover has fluctuated. The ratio was relatively high at 16.37 as of June 30, 2020, indicating that the company was paying its suppliers frequently. However, by the end of March 31, 2025, the payables turnover ratio had decreased to 6.01.

The decreasing trend in the payables turnover ratio may suggest that Agilysys Inc is taking longer to pay its suppliers, potentially indicating liquidity issues or changes in the company's payment policies. A declining payables turnover ratio could also indicate worsening supplier relationships or inefficient management of accounts payable.

It is essential for Agilysys Inc to carefully monitor its payables turnover ratio to ensure that the company maintains healthy relationships with its suppliers while efficiently managing its cash flow. Further analysis of the company's payment terms, vendor management, and overall financial health may provide additional insights into the reasons behind the fluctuations in the payables turnover ratio.