Carpenter Technology Corporation (CRS)

Payables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	2,627,300	2,535,400	1,924,400	1,795,700	2,223,100
Payables	US$ in thousands	263,900	278,100	242,100	142,400	124,200
Payables turnover		9.96	9.12	7.95	12.61	17.90

June 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,627,300K ÷ $263,900K
= 9.96

The payables turnover ratio for Carpenter Technology Corporation has exhibited a fluctuating trend over the past five years. The ratio was 9.96 in 2024, indicating that the company's payables turnover has increased compared to the previous year. This suggests that Carpenter Technology Corporation is paying its suppliers approximately 9.96 times during the year, which may indicate effective management of accounts payable.

In 2023, the payables turnover ratio was slightly lower at 9.12, but still reflects a relatively efficient payment pattern. The ratio then decreased to 7.95 in 2022, suggesting that the company took slightly longer to pay its suppliers compared to the previous years.

The payables turnover ratio saw a significant increase in 2021, rising to 12.61. This surge may indicate that Carpenter Technology Corporation was able to pay its suppliers more frequently during the year, potentially improving its working capital management.

The highest payables turnover ratio in the provided data was in 2020 at 17.90, indicating that the company was efficiently managing its payables by paying suppliers almost 18 times during the year.

Overall, while the payables turnover ratio has fluctuated over the five-year period, Carpenter Technology Corporation has generally maintained a relatively efficient payment process in managing its accounts payable. It is important for the company to continue monitoring and optimizing its payables turnover to ensure effective working capital management and relationships with its suppliers.