Carpenter Technology Corporation (CRS)

Payables turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	3,953,200	3,947,200	4,005,900	4,013,400	3,953,700	3,384,600	2,821,900	2,352,900	1,924,600	671,200	696,800	1,095,500	1,450,100	1,543,300	2,011,200	2,091,100	2,223,000	2,153,300	2,162,600	2,145,000
Payables	US$ in thousands	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	124,200	209,600	233,900	259,900
Payables turnover		14.98	14.34	12.78	12.72	14.22	11.75	9.26	8.17	7.95	3.14	4.09	5.17	10.18	11.42	18.55	18.31	17.90	10.27	9.25	8.25

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,953,200K ÷ $263,900K
= 14.98

Carpenter Technology Corporation's payables turnover ratio has shown fluctuations over the periods provided in the table. The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating how many times during a period a company pays off its average accounts payable balance.

The trend in Carpenter Technology Corporation's payables turnover ratio indicates that the company has generally been able to effectively manage its payables. The ratio has varied between 3.14 and 18.55 over the periods, with an average of approximately 11.63.

A higher payables turnover ratio suggests that the company is efficiently managing its suppliers and paying off its obligations quickly. On the other hand, a lower ratio could indicate that the company is taking longer to pay its suppliers, potentially straining relationships or missing out on early payment discounts.

It is essential for investors and stakeholders to monitor the payables turnover ratio over time to assess the company's liquidity and operational efficiency. Additionally, comparing the ratio with industry peers can provide further insights into Carpenter Technology Corporation's financial health and performance in managing its accounts payable.