Applied Materials Inc (AMAT)
Payables turnover
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,468,000 | 16,276,000 | 15,670,000 | 13,929,000 | 10,979,000 |
| Payables | US$ in thousands | 1,570,000 | 1,478,000 | 1,755,000 | 1,472,000 | 1,124,000 |
| Payables turnover | 10.49 | 11.01 | 8.93 | 9.46 | 9.77 |
October 27, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $16,468,000K ÷ $1,570,000K
= 10.49
The payables turnover ratio for Applied Materials Inc has been relatively stable over the past five years. The ratio indicates how efficiently the company manages its accounts payable by comparing the cost of goods sold to average accounts payable during a certain period.
Applied Materials Inc's payables turnover has ranged from 8.93 to 11.01 times in the last five years, with the highest turnover of 11.01 in Oct 29, 2023, and the lowest turnover of 8.93 in Oct 30, 2022. A higher payables turnover ratio generally indicates that the company is paying off its suppliers quickly, which can be favorable in terms of maintaining good relationships and potentially negotiating better terms.
Overall, Applied Materials Inc's payables turnover has shown consistency over the years, hovering around the 9 to 11 times range. This indicates that the company has been efficiently managing its accounts payable in relation to its cost of goods sold during the period analyzed.
Peer comparison
Oct 27, 2024