Berry Global Group Inc (BERY)

Payables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	11,594,000	13,262,000	12,572,000	10,554,000	7,259,000
Payables	US$ in thousands	1,528,000	1,795,000	2,041,000	1,115,000	1,159,000
Payables turnover		7.59	7.39	6.16	9.47	6.26

September 30, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $11,594,000K ÷ $1,528,000K
= 7.59

The payables turnover ratio for Berry Global Group Inc has shown fluctuation over the past five years. In 2023, the payables turnover ratio stood at 6.78, indicating that the company converted its accounts payable into cash approximately 6.78 times during the year. This was a slight increase from the previous year's ratio of 6.75.

Comparing this to 2021, the payables turnover ratio was 5.56, showing a lower turnover of accounts payable compared to 2023. The ratio improved in 2020, reaching 8.34, signaling a more efficient management of the company's accounts payable in converting them to cash. In 2019, the payables turnover ratio was 6.26.

The increasing trend in the payables turnover ratio from 2019 to 2020 suggests that the company improved its efficiency in managing its accounts payable. However, the slight fluctuations in the subsequent years indicate some variability in the management of payables. It is important to assess the reasons behind these fluctuations to gain a deeper understanding of the company's payment policies and supplier relationships.