AeroVironment Inc (AVAV)
Payables turnover
| Apr 30, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 30, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | Apr 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | Apr 30, 2020 | Jul 27, 2019 | Apr 30, 2019 | Oct 27, 2018 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 566,945 | 779,492 | 746,580 | 723,995 | 713,065 | 449,618 | 428,031 | 423,956 | 427,729 | 421,303 | 375,000 | 315,824 | 308,556 | 248,611 | 272,736 | 265,277 | 211,612 | 209,827 | 177,237 | 175,484 |
| Payables | US$ in thousands | 48,298 | 26,969 | 28,834 | 28,824 | 31,355 | 26,420 | 26,317 | 21,945 | 19,244 | 15,118 | 21,443 | 18,046 | 24,841 | 14,225 | 11,740 | 19,859 | 11,450 | 15,972 | 14,149 | 12,939 |
| Payables turnover | 11.74 | 28.90 | 25.89 | 25.12 | 22.74 | 17.02 | 16.26 | 19.32 | 22.23 | 27.87 | 17.49 | 17.50 | 12.42 | 17.48 | 23.23 | 13.36 | 18.48 | 13.14 | 12.53 | 13.56 |
April 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $566,945K ÷ $48,298K
= 11.74
AeroVironment Inc's payables turnover ratio has shown fluctuations over the past several periods, ranging from a low of 11.74 to a high of 28.90. The payables turnover ratio measures how efficiently a company manages its accounts payable by indicating how many times during a period the company pays off its average accounts payable balance.
The significant variation in AeroVironment Inc's payables turnover ratio suggests changes in the company's payment practices or relationships with its suppliers. A high payables turnover ratio, such as the 28.90 recorded in January 2024, indicates that the company is paying off its suppliers quickly, which can be a sign of strong liquidity management but may also strain supplier relationships. Conversely, a lower payables turnover ratio, like the 11.74 seen in April 2024, suggests that the company is taking longer to pay its accounts payable, potentially indicating cash flow challenges or a deliberate strategy to manage working capital.
It may be beneficial for AeroVironment Inc to analyze the reasons behind the fluctuations in its payables turnover ratio to ensure they are managing their working capital effectively while maintaining positive relationships with suppliers. Additionally, monitoring this ratio over time can provide insights into the company's financial health and operational efficiency.
Peer comparison
Apr 30, 2024