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

Company name
Symbol
Payables turnover
AeroVironment Inc
AVAV
6.93
The Boeing Company
BA
6.03