Carpenter Technology Corporation (CRS)

Payables turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	2,108,500	2,175,400	2,213,000	1,686,500	1,474,600
Payables	US$ in thousands	267,400	263,900	278,100	242,100	142,400
Payables turnover		7.89	8.24	7.96	6.97	10.36

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,108,500K ÷ $267,400K
= 7.89

The payables turnover ratio for Carpenter Technology Corporation over the period from June 30, 2021, to June 30, 2025, demonstrates notable fluctuations that reflect changes in the company's management of its accounts payable.

In fiscal year 2021, the payables turnover was 10.36, indicating that the company, on average, settled its payables roughly 10.36 times within the fiscal year. This relatively high turnover rate suggests efficient management of short-term liabilities and prompt payment practices during that year.

By fiscal year 2022, the ratio decreased substantially to 6.97, representing a decline in the frequency of paying off accounts payable. This reduction could imply a strategic extension of payment periods, possibly to optimize cash flow, or a change in supplier terms, or management’s shifting approach towards longer payment cycles.

In the subsequent year, 2023, the ratio increased slightly to 7.96, signaling a modest tightening of payment practices compared to the previous year. This could indicate a normalization or an attempt to improve supplier relationships by making payments more promptly.

Continuing into fiscal year 2024, the payables turnover further increased marginally to 8.24, reinforcing a trend towards shorter payment cycles but still remaining below the levels observed in 2021. This indicates a cautious but improving approach to managing trade payables.

Finally, in fiscal year 2025, the ratio slightly declined to 7.89, close to the 2023 level, reflecting a stabilization of payment behavior. The company maintains a pace of payment that is less aggressive than in 2021 but consistent with cautious management strategies exhibited in the recent years.

Overall, the trend in Carpenter Technology Corporation’s payables turnover ratio indicates a significant decrease from 2021 to 2022, followed by a gradual recovery through 2023 and 2024, with a slight decrease in 2025. The fluctuations imply shifts in the company’s payment policies, cash management strategies, or changes in supplier terms over the period.