AeroVironment Inc (AVAV)
Payables turnover
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 501,991 | 432,789 | 367,022 | 304,496 | 230,354 |
| Payables | US$ in thousands | 72,462 | 48,298 | 31,355 | 19,244 | 24,841 |
| Payables turnover | 6.93 | 8.96 | 11.71 | 15.82 | 9.27 |
April 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $501,991K ÷ $72,462K
= 6.93
The payables turnover ratio for AeroVironment Inc has exhibited notable fluctuations over the period from April 2021 to April 2025. Specifically, on April 30, 2021, the ratio was 9.27, indicating that the company settled its average accounts payable approximately 9.27 times during that fiscal year. By April 30, 2022, the ratio increased significantly to 15.82, suggesting an improvement in the company's ability to promptly pay its suppliers or a reduction in average payables relative to cost of goods sold or purchases.
However, in the subsequent year, the ratio decreased to 11.71 on April 30, 2023, reflecting a reduction in the frequency of payment cycles, potentially indicating lengthening payment periods or changes in supplier terms. The trend continued with the ratio declining further to 8.96 on April 30, 2024, and to 6.93 on April 30, 2025, signaling a continued elongation in the company's accounts payable period.
Overall, the pattern suggests that AeroVironment Inc increased its payables turnover significantly in 2022, then experienced a gradual decline over the following years. The decreasing trend may indicate a strategic extension of payment cycles, possible liquidity considerations, or changes in supply chain management. Nonetheless, such a trend warrants further analysis into the company’s cash management policies and supplier relationships to fully understand its implications on liquidity and overall operational efficiency.
Peer comparison
Apr 30, 2025