Aspen Technology Inc (AZPN)

Payables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022
Cost of revenue	US$ in thousands	382,576	373,589	199,916
Payables	US$ in thousands	8,099	20,299	21,416
Payables turnover		47.24	18.40	9.33

June 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $382,576K ÷ $8,099K
= 47.24

Aspen Technology Inc's payables turnover has shown a significant improvement over the past three years, indicating a more efficient management of its accounts payable. The payables turnover ratio increased from 9.33 in 2022 to 18.40 in 2023, and further to 47.24 in 2024. This upward trend suggests that the company is paying off its suppliers at a faster rate each year.

A payables turnover ratio of 47.24 in 2024 means that Aspen Technology Inc is able to convert its accounts payable into cash 47.24 times during the year, or approximately every 7.7 days. This rapid turnover could indicate good relationships with suppliers, efficient cash management, or possibly taking advantage of early payment discounts.

Overall, the increasing payables turnover ratio reflects positively on Aspen Technology Inc's liquidity and working capital management, as well as its ability to effectively manage its payables. However, it is important to consider industry benchmarks and compare with peer companies to gain a more comprehensive understanding of the company's performance in this area.