Cirrus Logic Inc (CRUS)

Payables turnover

		Mar 31, 2024	Dec 31, 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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cost of revenue (ttm)	US$ in thousands	1,047,612	1,156,062	1,148,437	1,186,214	1,222,853	1,165,185	1,131,120	1,090,808	1,033,615	942,110	911,746	841,534	814,237	620,229	566,795	582,430	582,552	750,548	742,519	742,868
Payables	US$ in thousands	55,545	56,231	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	95,523	78,412	98,835	109,374	60,408
Payables turnover		18.86	20.56	13.15	15.62	15.01	9.92	9.59	8.98	8.96	8.55	2.36	8.84	7.92	6.83	5.72	6.10	7.43	7.59	6.79	12.30

March 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,047,612K ÷ $55,545K
= 18.86

The payables turnover ratio for Cirrus Logic Inc has fluctuated over the past few quarters, indicating varying efficiency in managing its accounts payable. The company's payables turnover was relatively low in the first three quarters of 2021, with values ranging from 2.36 to 8.55. However, there was a significant improvement in the payables turnover ratio in Q4 2021, reaching 12.30.

Throughout 2022 and 2023, Cirrus Logic Inc maintained a relatively higher payables turnover ratio, ranging from 8.96 to 20.56. This suggests that the company was able to pay off its suppliers more frequently during these periods, which could indicate efficient cash flow management or better negotiation terms with suppliers.

The highest payables turnover ratio was observed in Q1 2024 at 18.86, indicating that Cirrus Logic Inc is effectively managing its accounts payable and possibly taking advantage of favorable payment terms. It is essential to monitor this ratio in the future to assess the company's ability to maintain efficient payables management and vendor relationships.