Azenta Inc (AZTA)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 808,375 | 606,393 | 601,077 | 825,248 | 732,896 |
| Payables | US$ in thousands | 35,796 | 38,654 | 42,360 | 25,689 | 58,919 |
| Payables turnover | 22.58 | 15.69 | 14.19 | 32.12 | 12.44 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $808,375K ÷ $35,796K
= 22.58
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable. A higher payables turnover ratio generally indicates that the company is paying off its suppliers more quickly.
Azenta Inc's payables turnover has shown an upward trend over the past five years, reaching 11.23 in Sep 30, 2023, from 7.89 in Sep 30, 2019. This indicates an improvement in the company's ability to pay off its suppliers relative to its cost of goods sold.
A higher payables turnover ratio may suggest that Azenta Inc has been able to negotiate more favorable payment terms with its suppliers, leading to a faster turnover of accounts payable. It may also indicate effective inventory management or improved cash flow.
Overall, the increasing trend in Azenta Inc's payables turnover ratio reflects positively on the company's ability to efficiently manage its accounts payable and suggests improved liquidity and financial management.
Peer comparison
Sep 30, 2023