AeroVironment Inc (AVAV)
Payables turnover
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 503,698 | 451,805 | 467,711 | 505,507 | 501,250 | 516,300 | 482,644 | 443,572 | 455,747 | 406,757 | 439,774 | 411,924 | 409,573 | 395,490 | 378,400 | 376,706 | 330,073 | 353,388 | 330,327 | 357,542 |
| Payables | US$ in thousands | 72,462 | 48,766 | 40,646 | 43,596 | 48,298 | 26,969 | 26,969 | 28,834 | 28,834 | 28,824 | 28,824 | 31,355 | 26,420 | 26,420 | 26,317 | 26,317 | 21,945 | 21,945 | 19,244 | 15,118 |
| Payables turnover | 6.95 | 9.26 | 11.51 | 11.60 | 10.38 | 19.14 | 17.90 | 15.38 | 15.81 | 14.11 | 15.26 | 13.14 | 15.50 | 14.97 | 14.38 | 14.31 | 15.04 | 16.10 | 17.17 | 23.65 |
April 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $503,698K ÷ $72,462K
= 6.95
The payables turnover ratio for AeroVironment Inc demonstrates notable fluctuations over the analyzed period, reflecting shifts in the company's management of accounts payable relative to its cost of goods sold or purchases.
From January 31, 2022, the ratio was at 23.65, indicating that the company was settling its payables approximately 23.65 times within the fiscal year. This high ratio suggests a more aggressive approach to paying suppliers or possibly a shorter average payment period. Over the subsequent quarters in 2022, the ratio declined progressively, reaching 14.31 by October 29, 2022, and maintaining similar levels shortly after, such as 14.97 and 15.50 in early 2023, indicating a stabilization at a somewhat moderate payment cycle.
In 2023, the ratio persisted around the mid-teens, with values such as 13.14 in April, 15.26 in July, and 14.11 in July, reflecting consistency in payment practices or potentially a strategic balance between paying suppliers timely and optimizing cash flows. The ratio then increased again toward the end of 2023, reaching a higher value of 15.81 and 15.38, which could suggest a slight shortening in payment periods or an effort to maintain favorable supplier relationships.
Beginning in January 2024, a significant decline is observed, with the ratio dropping to 17.90 initially, then decreasing sharply to 19.14, and subsequently plummeting through 10.38 in April and settling around 11 in mid-2024. These reductions imply a lengthening of the average payment duration, possibly indicating more extended credit terms, delayed payments, or strategic shifts to improve liquidity.
Looking further into 2024 and early 2025, the ratio continues to trend downward, reaching as low as 6.95 in April 2025 and 9.26 in January 2025, respectively. This sustained decrease suggests that AeroVironment Inc has implemented policies or operational conditions resulting in prolonged payables cycles, which may affect supplier relationships or cash management strategies.
Overall, the pattern indicates a transition from a period of high payables turnover in early 2022, indicating rapid payments, toward a trend of lengthening payment cycles starting around 2024, possibly reflecting deliberate liquidity management, negotiations with suppliers for extended terms, or changes in procurement practices. These shifts underscore the company's evolving approach to managing its accounts payable relative to its purchase activity over the analyzed timeframe.
Peer comparison
Apr 30, 2025