Avnet Inc (AVT)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 19,815,800 | 20,990,700 | 23,354,700 | 21,345,300 | 17,294,000 |
| Payables | US$ in thousands | 3,487,420 | 3,345,510 | 3,373,820 | 3,431,680 | 2,401,360 |
| Payables turnover | 5.68 | 6.27 | 6.92 | 6.22 | 7.20 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $19,815,800K ÷ $3,487,420K
= 5.68
The payables turnover ratio for Avnet Inc demonstrates variations over the observed period from June 30, 2021, to June 30, 2025. In 2021, the ratio stood at 7.20, indicating the company paid its accounts payable approximately 7.2 times during the fiscal year. By 2022, this ratio declined to 6.22, suggesting a slight lengthening in the period required to settle payables. In 2023, the ratio experienced a modest increase to 6.92, reflecting a somewhat quicker payment cycle compared to the previous year. However, in 2024, the ratio decreased again to 6.27, indicating a trend toward lengthening the payment period once more. Finally, in 2025, the ratio further decreased to 5.68, signifying an extended duration to pay off suppliers relative to earlier years.
Overall, the trend indicates a gradual decline in the payables turnover ratio over the four-year span, with some fluctuations. This suggests that Avnet Inc has been extending its payment terms with suppliers over time. A declining payables turnover ratio could be indicative of strategic management of working capital, potential changes in supplier relationships, or shifts in the company's liquidity management practices. It warrants further analysis of related liquidity and cash flow metrics to better understand the implications of these changes.
Peer comparison
Jun 30, 2025