Cirrus Logic Inc (CRUS)

Payables turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cost of revenue	US$ in thousands	900,039	872,818	940,638	857,819	661,929
Payables	US$ in thousands	63,162	55,545	81,462	115,417	102,744
Payables turnover		14.25	15.71	11.55	7.43	6.44

March 31, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $900,039K ÷ $63,162K
= 14.25

The payables turnover ratio for Cirrus Logic Inc has shown a positive trend over the past five years, increasing from 6.44 in March 31, 2021, to 14.25 in March 31, 2025. This indicates that the company is more efficient in managing its accounts payable. A higher payables turnover ratio suggests that Cirrus Logic is paying off its suppliers more frequently or in a timely manner, which may help in maintaining good relationships with its vendors and suppliers. An increasing payables turnover ratio can also indicate improved liquidity and working capital management within the company. Overall, the upward trend in the payables turnover ratio reflects positively on Cirrus Logic's financial performance and efficiency in managing its payable obligations.