Cavco Industries Inc (CVCO)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,367,890 | 1,587,780 | 1,218,410 | 869,074 | 831,256 |
| Payables | US$ in thousands | 33,531 | 30,730 | 43,082 | 32,120 | 29,924 |
| Payables turnover | 40.79 | 51.67 | 28.28 | 27.06 | 27.78 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,367,890K ÷ $33,531K
= 40.79
Cavco Industries Inc's payables turnover has exhibited fluctuations over the past five years. The payables turnover ratio has ranged from 28.28 in March 2022 to 51.67 in March 2023, indicating variability in how efficiently the company is managing its accounts payable.
A higher payables turnover ratio typically suggests that the company is paying off its suppliers more quickly, which could indicate strong liquidity or effective negotiation with suppliers for favorable credit terms. Conversely, a lower payables turnover ratio may imply that the company is taking longer to pay its suppliers, potentially signaling liquidity challenges or a less efficient accounts payable process.
In 2024, Cavco Industries Inc's payables turnover ratio of 40.79 demonstrates an improvement from the previous year. This uptick could indicate enhanced efficiency in managing payables or a shift in payment strategies. Further analysis and comparison with industry peers would provide additional insights into the company's payables management practices.