Aspen Technology Inc (AZPN)

Payables turnover

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Cost of revenue (ttm)	US$ in thousands	382,576	381,497	382,354	380,519	373,589	434,423	384,425
Payables	US$ in thousands	8,099	9,876	16,517	15,301	20,299	11,531	12,975	11,732	21,416	—
Payables turnover		47.24	38.63	23.15	24.87	18.40	37.67	29.63

June 30, 2024 calculation

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

Aspen Technology Inc's payables turnover ratio fluctuated over the past ten quarters. The payables turnover ratio measures how efficiently the company is managing its accounts payable by evaluating how quickly it pays its suppliers.

In Q2 2022 (ending on June 30, 2022), the payables turnover ratio was 29.63. This ratio increased to 37.67 in the following quarter, Q3 2022 (ending on March 31, 2023), indicating that Aspen Technology Inc was paying its suppliers more frequently during that period.

However, in Q2 2023 (ending on June 30, 2023), the payables turnover ratio dropped to 18.40. This decline suggests that the company was taking longer to pay its suppliers compared to the previous quarter.

The ratio significantly rebounded in the subsequent quarter, reaching 24.87 in Q3 2023 (ending on September 30, 2023), reflecting an improvement in the management of accounts payable.

The trend continued to improve with the payables turnover ratio steadily increasing in Q4 2023, Q1 2024, and Q2 2024. In particular, the ratio was 47.24 in Q2 2024 (ending on June 30, 2024), indicating that Aspen Technology Inc enhanced its efficiency in paying suppliers during this period.

Overall, the upward trend in the payables turnover ratio in recent quarters suggests that Aspen Technology Inc's management of accounts payable has improved, as the company may have been more prompt in settling its payables with suppliers. Maintaining or increasing this efficiency in managing payables can positively impact the company's working capital and overall financial performance.