Capri Holdings Ltd (CPRI)
Payables turnover
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,398,000 | 5,024,000 | 4,987,000 | 4,949,000 | 4,924,000 | 4,920,000 | 4,913,000 | 4,853,000 | 4,719,000 | 4,675,000 | 4,545,000 | 4,396,000 | 4,014,000 | 3,180,000 | 3,405,000 | 3,817,000 | 4,486,000 | 4,033,000 | 3,802,300 | 3,506,700 |
| Payables | US$ in thousands | 352,000 | 370,000 | 355,000 | 476,000 | 475,000 | 519,000 | 370,000 | 540,000 | 555,000 | 593,000 | 491,000 | 464,000 | 512,000 | 495,000 | 558,000 | 596,000 | 428,000 | 375,000 | 390,000 | 355,000 |
| Payables turnover | 15.34 | 13.58 | 14.05 | 10.40 | 10.37 | 9.48 | 13.28 | 8.99 | 8.50 | 7.88 | 9.26 | 9.47 | 7.84 | 6.42 | 6.10 | 6.40 | 10.48 | 10.75 | 9.75 | 9.88 |
March 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,398,000K ÷ $352,000K
= 15.34
The payables turnover ratio of Capri Holdings Ltd over the past few quarters has exhibited fluctuations. The ratio peaked at 15.34 times in March 2024, indicating that the company paid its suppliers approximately 15 times during the year. This may suggest efficient management of accounts payable and a shorter payment cycle, potentially improving cash flow.
In contrast, the ratio declined to 6.42 times in March 2021 and then fluctuated around an average of 10 times in the following quarters. A lower payables turnover ratio could indicate a longer payment cycle, potentially leading to strained relationships with suppliers or missed discounts for early payment.
Overall, with the recent increase in payables turnover, Capri Holdings Ltd appears to be managing its payables more efficiently, which can positively impact working capital management and overall financial health.
Peer comparison
Mar 31, 2024