Cirrus Logic Inc (CRUS)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	1,047,610	1,222,850	1,033,620	814,237	801,858
Payables	US$ in thousands	55,545	81,462	115,417	102,744	78,412
Payables turnover		18.86	15.01	8.96	7.92	10.23

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,047,610K ÷ $55,545K
= 18.86

The payables turnover ratio for Cirrus Logic Inc has shown a consistent improvement over the past five years. The ratio increased from 10.23 in 2020 to 18.86 in 2024, indicating that the company is taking less time to pay its suppliers. This could suggest efficient management of payables and potentially better cash flow management.

A higher payables turnover ratio could signify that Cirrus Logic Inc is effectively managing its working capital and maintaining good relationships with its suppliers by paying them in a timely manner. It could also indicate strong inventory management practices, as the company may be selling goods quickly and paying suppliers promptly.

Overall, the increasing trend in the payables turnover ratio for Cirrus Logic Inc demonstrates a positive sign of operational efficiency and effective management of its payables over the past five years.