Cirrus Logic Inc (CRUS)

Payables turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Sep 23, 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	900,039	879,548	923,117	898,317	984,325	964,725	849,673	909,083	907,262	940,638	985,413	950,363	911,517	857,819	771,994	747,462	684,135	661,929	649,567	592,435
Payables	US$ in thousands	63,162	77,907	91,899	77,562	55,545	56,231	87,340	87,340	75,941	81,462	117,406	118,000	121,451	115,417	110,250	386,699	95,232	102,744	90,814	99,105
Payables turnover		14.25	11.29	10.04	11.58	17.72	17.16	9.73	10.41	11.95	11.55	8.39	8.05	7.51	7.43	7.00	1.93	7.18	6.44	7.15	5.98

March 31, 2025 calculation

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

The payables turnover ratio for Cirrus Logic Inc has fluctuated over the periods provided in the data. It measures the efficiency with which the company pays its suppliers. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently within a given period.

Initially, in September 2020, the payables turnover ratio stood at 5.98, showing that the company was turning over its payables nearly 6 times within the year. The ratio improved steadily, reaching a peak of 17.72 in March 2024. This significant increase may suggest that Cirrus Logic Inc was managing its payables more efficiently during that period.

However, there was a decline in the ratio in the subsequent periods. By December 2024, the ratio dropped down to 11.29, indicating a slowdown in the rate of paying off suppliers. The ratio further decreased to 14.25 by March 2025, which might suggest a change in the company's payment practices or supplier relationships.

Overall, the trend in Cirrus Logic Inc's payables turnover ratio showcases variations in the company's efficiency in managing its accounts payable over the different financial periods. It is essential for stakeholders to monitor these fluctuations to understand the company's liquidity management and supplier relationships effectively.