Applied Materials Inc (AMAT)
Payables turnover
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 16,300,000 | 16,142,000 | 15,997,000 | 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 |
| Payables | US$ in thousands | 1,570,000 | 1,470,000 | 1,457,000 | 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 |
| Payables turnover | 10.38 | 10.98 | 10.98 | 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 |
October 27, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,300,000K ÷ $1,570,000K
= 10.38
The payables turnover ratio measures how efficiently a company is managing its accounts payable by analyzing how quickly the company is paying off its suppliers. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which could indicate effective cash management or good relationship management with suppliers.
Applied Materials Inc's payables turnover ratio has been relatively stable over the past several quarters, ranging from 8.09 to 11.29. This suggests that the company has been consistently managing its payables effectively.
A consistent payables turnover ratio can indicate that Applied Materials Inc has established a reliable payment cycle with its suppliers, allowing for smoother operations and potentially favorable terms for future transactions. However, it's worth noting that the payables turnover ratio should be analyzed in conjunction with other financial ratios and metrics to gain a more comprehensive understanding of the company's financial health and performance.
Peer comparison
Oct 27, 2024