Capri Holdings Ltd (CPRI)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,398,000 | 4,924,000 | 4,719,000 | 4,009,000 | 5,735,000 |
| Payables | US$ in thousands | 352,000 | 475,000 | 555,000 | 512,000 | 428,000 |
| Payables turnover | 15.34 | 10.37 | 8.50 | 7.83 | 13.40 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,398,000K ÷ $352,000K
= 15.34
The payables turnover ratio for Capri Holdings Ltd has exhibited fluctuations over the past five years. In the most recent fiscal year ending on March 31, 2024, the company's payables turnover ratio stood at 15.34. This indicates that Capri Holdings Ltd was able to pay off its trade payables approximately 15.34 times during the year.
Comparing this figure to the previous years, we observe an increasing trend in the payables turnover ratio from 2021 to 2024. In particular, there was a significant improvement in the payables turnover ratio from 2022 to 2023, and then a subsequent increase from 2023 to 2024. This suggests that the company has been more efficient in managing its accounts payable and settling its obligations in a timely manner in recent years.
Overall, a higher payables turnover ratio signifies that the company is efficiently managing its accounts payable by either paying suppliers more frequently or negotiating favorable payment terms. It indicates strong liquidity and effective working capital management. However, it is essential to consider the industry norms and compare the company's ratio with its peers to gain a deeper understanding of its performance in this aspect.
Peer comparison
Mar 31, 2024