Cavco Industries Inc (CVCO)

Payables turnover

		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	Jun 30, 2019
Cost of revenue (ttm)	US$ in thousands	1,367,890	1,402,526	1,427,443	1,502,163	1,587,781	1,607,921	1,555,792	1,405,614	1,218,409	1,078,157	991,185	926,005	869,074	836,884	821,217	826,990	831,256	813,139	783,951	765,857
Payables	US$ in thousands	33,531	23,928	41,095	28,634	30,730	26,788	42,655	44,897	43,082	33,756	42,549	30,175	32,120	25,176	32,919	34,658	29,924	27,050	29,886	24,816
Payables turnover		40.79	58.61	34.74	52.46	51.67	60.02	36.47	31.31	28.28	31.94	23.30	30.69	27.06	33.24	24.95	23.86	27.78	30.06	26.23	30.86

March 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,367,890K ÷ $33,531K
= 40.79

The payables turnover ratio for Cavco Industries Inc has shown fluctuations over the past five years. The ratio indicates the efficiency with which the company pays its suppliers. A higher payables turnover ratio generally suggests that the company is managing its payables effectively and paying its suppliers more frequently.

In the most recent period, as of March 31, 2024, the payables turnover ratio stands at 40.79 times, which is higher compared to the previous quarter but lower than the exceptionally high turnover ratio in December 2023. This could indicate that the company has increased the speed at which it pays its suppliers in the most recent quarter.

Over the past two years, the payables turnover ratio for Cavco Industries Inc has generally been above 30 times, which indicates the company's consistent effort in managing its payables efficiently. However, it is important to note the fluctuations in the ratio, which may be influenced by various factors such as seasonal variations, changes in payment terms with suppliers, or changes in purchasing patterns.

Overall, a high payables turnover ratio for Cavco Industries Inc reflects its efficient management of trade payables and its ability to maintain strong relationships with suppliers by fulfilling payment obligations in a timely manner.