Catalent Inc (CTLT)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,428,000 | 3,223,000 | 3,188,000 | 2,646,000 | 2,111,000 |
| Payables | US$ in thousands | 361,000 | 424,000 | 421,000 | 385,000 | 321,000 |
| Payables turnover | 9.50 | 7.60 | 7.57 | 6.87 | 6.58 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,428,000K ÷ $361,000K
= 9.50
The payables turnover ratio for Catalent Inc has shown an increasing trend over the past five years, indicating an improvement in the company's ability to manage its accounts payables.
In particular, the payables turnover ratio increased from 6.58 in 2020 to 9.50 in 2024, suggesting that Catalent has been able to pay off its suppliers more frequently within the year. This may indicate more efficient management of trade credit terms and better working capital management.
The consistent increase in the payables turnover ratio could be a positive sign of stronger supplier relationships, improved negotiation of payment terms, or possibly more efficient inventory management. This trend may also suggest that Catalent is effectively managing its working capital and optimizing its cash flow by paying its suppliers in a timely manner.
Overall, the increasing payables turnover ratio for Catalent Inc reflects positively on the company's financial health and efficiency in managing its accounts payable.
Peer comparison
Jun 30, 2024