Avnet Inc (AVT)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 20,990,700 | 23,354,700 | 21,345,300 | 17,294,000 | 15,570,900 |
| Payables | US$ in thousands | 3,345,510 | 3,373,820 | 3,431,680 | 2,401,360 | 1,754,080 |
| Payables turnover | 6.27 | 6.92 | 6.22 | 7.20 | 8.88 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $20,990,700K ÷ $3,345,510K
= 6.27
The payables turnover for Avnet Inc has displayed fluctuations over the past five years. The ratio indicates the number of times a company pays off its accounts payable during a period. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently.
In 2020, the payables turnover was 8.88, which declined to 7.20 in 2021 before further decreasing to 6.22 in 2022. However, in 2023, there was a slight improvement to 6.92. The most recent data for 2024 shows a further decrease to 6.27.
The decreasing trend in the payables turnover ratio may indicate that Avnet Inc is taking longer to pay off its suppliers, which could potentially strain supplier relationships or reflect changes in the company's payment policies. It is essential for the company to monitor and manage its payables turnover effectively to ensure smooth operations and maintain positive relationships with its suppliers.
Peer comparison
Jun 30, 2024