Carpenter Technology Corporation (CRS)

Payables turnover

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Cost of revenue (ttm) US$ in thousands 2,108,600 2,171,400 2,178,900 2,182,900 2,169,400 2,204,000 2,266,900 2,272,600 2,212,900 2,065,600 1,918,500 1,792,300 1,686,600 1,637,700 1,527,300 1,487,200 1,474,600 1,445,100 1,581,900 1,699,500
Payables US$ in thousands 267,400 258,400 262,400 273,300 263,900 275,200 313,400 315,500 278,100 288,000 304,700 288,000 242,100 214,000 170,300 212,000 142,400 135,100 108,400 114,200
Payables turnover 7.89 8.40 8.30 7.99 8.22 8.01 7.23 7.20 7.96 7.17 6.30 6.22 6.97 7.65 8.97 7.02 10.36 10.70 14.59 14.88

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,108,600K ÷ $267,400K
= 7.89

The payables turnover ratio of Carpenter Technology Corporation exhibits notable fluctuations over the analyzed period from September 2020 through June 2025. Initially, the ratio was relatively high at 14.88 in September 2020 and 14.59 in December 2020, indicating a rapid turnover in accounts payable, which suggests prompt payment practices or possibly favorable credit terms.

Subsequently, there was a significant decline by March 2021 to 10.70 and further down to 10.36 in June 2021, reflecting a slowdown in the frequency of paying off payables or an extension of credit terms negotiated with suppliers. The downward trend continued sharply into the second half of 2021, with ratios decreasing to 7.02 in September 2021 and reaching a low point of 6.22 in September 2022. This sustained decrease could signal extended payment periods, possibly a response to cash flow management strategies or changes in supplier credit terms.

From late 2022 onward, the ratio demonstrates a modest recovery, increasing gradually to 7.17 in March 2023, then to 7.96 in June 2023, and slightly declining to 7.20 in September 2023. This indicates a slight tightening in accounts payable payment frequency. Moving toward the end of 2023 and into 2024, the ratio continues to increase, reaching 8.30 in December 2024 and 8.40 in March 2025, before settling at approximately 7.89 in June 2025.

Overall, the trend depicts an initial period of high payables turnover that diminished sharply over the course of 2021 and 2022, suggesting extended payment periods or more conservative credit management practices during this interval. The subsequent gradual increase from late 2022 into 2025 indicates a potential reversal toward earlier payment patterns or improved management of accounts payable. These fluctuations may reflect strategic shifts in working capital management, supplier negotiations, and broader economic conditions impacting payment practices.