Applied Materials Inc (AMAT)
Payables turnover
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 15,993,000 | 16,034,000 | 16,093,000 | 16,128,000 | 15,846,000 | 15,471,000 | 14,911,000 | 14,563,000 | 14,134,000 | 13,204,000 | 12,554,000 | 11,440,000 | 10,403,000 | 9,894,000 | 9,072,000 | 8,637,000 | 8,438,000 | 8,222,000 | 8,204,000 | 8,497,000 |
| Payables | US$ in thousands | 1,416,000 | 1,478,000 | 1,433,000 | 1,468,000 | 1,611,000 | 1,755,000 | 1,686,000 | 1,558,000 | 1,502,000 | 1,472,000 | 1,352,000 | 1,307,000 | 1,076,000 | 1,124,000 | 1,118,000 | 1,062,000 | 1,043,000 | 958,000 | 890,000 | 903,000 |
| Payables turnover | 11.29 | 10.85 | 11.23 | 10.99 | 9.84 | 8.82 | 8.84 | 9.35 | 9.41 | 8.97 | 9.29 | 8.75 | 9.67 | 8.80 | 8.11 | 8.13 | 8.09 | 8.58 | 9.22 | 9.41 |
January 28, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $15,993,000K ÷ $1,416,000K
= 11.29
The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the amount of purchases made on credit to the average accounts payable balance during a period.
Looking at the payables turnover for Applied Materials Inc. from Q1 2024 to Q2 2022, we observe fluctuations in the ratio. The payables turnover has been consistently high, indicating that the company is able to settle its payables relatively quickly throughout the periods analyzed.
The trend shows a peak in Q1 2024 at 9.92, which represents the company's ability to pay off its accounts payable nearly 10 times during that quarter. This indicates that Applied Materials Inc. is efficient in managing its suppliers and maintaining good relationships with them.
Overall, the payables turnover for Applied Materials Inc. has generally been high and relatively stable, with occasional fluctuations being observed. This suggests effective management of the company's accounts payable and a strong liquidity position. Further analysis would be needed to understand any underlying factors driving the fluctuations in the ratio.
Peer comparison
Jan 28, 2024