Catalent Inc (CTLT)
Payables turnover
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,428,000 | 3,351,000 | 3,363,000 | 3,272,000 | 3,223,000 | 3,208,000 | 3,201,000 | 3,251,000 | 3,188,000 | 3,112,000 | 2,949,000 | 2,750,000 | 2,646,000 | 4,656,400 | 4,491,200 | 4,367,400 | 4,257,400 | 1,967,200 | 1,864,200 | 1,796,600 |
| Payables | US$ in thousands | 361,000 | 377,000 | 407,000 | 367,000 | 424,000 | 394,000 | 367,000 | 379,000 | 421,000 | 401,000 | 363,000 | 363,000 | 385,000 | 365,700 | 356,900 | 329,400 | 321,000 | 276,200 | 243,400 | 214,000 |
| Payables turnover | 9.50 | 8.89 | 8.26 | 8.92 | 7.60 | 8.14 | 8.72 | 8.58 | 7.57 | 7.76 | 8.12 | 7.58 | 6.87 | 12.73 | 12.58 | 13.26 | 13.26 | 7.12 | 7.66 | 8.40 |
June 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,428,000K ÷ $361,000K
= 9.50
The payables turnover for Catalent Inc has fluctuated over the period analyzed. The ratio measures how efficiently a company is managing its trade payables by indicating the number of times a company pays off its average accounts payable balance during a specific period.
In this case, we observe that the payables turnover ratio ranged from a low of 6.87 in March 2021 to a high of 13.26 in December 2020 and September 2020. A higher payables turnover ratio generally indicates that a company is taking fewer days to pay its suppliers, which can be a positive sign as it may suggest efficient cash management and good relationships with suppliers.
It's worth noting that a consistently low or declining payables turnover ratio could raise concerns about liquidity or strained relations with suppliers. Conversely, a consistently high or increasing ratio could indicate potential cash flow issues or difficulties in negotiating favorable payment terms with suppliers.
Overall, it is important for Catalent Inc to monitor its payables turnover ratio over time and compare it against industry benchmarks to ensure efficient working capital management and healthy supplier relationships.
Peer comparison
Jun 30, 2024