CommVault Systems Inc (CVLT)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	151,610	135,402	113,859	109,373	117,078
Payables	US$ in thousands	299	108	432	374	307
Payables turnover		507.06	1,253.72	263.56	292.44	381.36

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $151,610K ÷ $299K
= 507.06

CommVault Systems Inc's payables turnover has fluctuated significantly over the past five years. In March 2024, the payables turnover ratio was 507.06, representing a substantial increase from the ratio of 1,253.72 in March 2023. This sudden increase may indicate that the company is taking longer to pay its suppliers, which could be a cause for concern as it may strain relationships with vendors.

In contrast, in March 2022, the payables turnover ratio was 263.56, showing a decrease from the previous year. This decline could suggest improved efficiency in managing payables during that period. However, the ratio increased again in March 2023, indicating a potential reversal of this positive trend.

Compared to March 2020 and March 2021, the payables turnover ratio in the most recent year remains relatively high. This may indicate that CommVault Systems Inc is taking longer to pay its suppliers compared to the earlier years, which could impact cash flow and liquidity.

Overall, the fluctuation in payables turnover ratios over the years signals variations in the company's payment practices and efficiency in managing its accounts payable. Monitoring this ratio closely can provide insights into the company's financial performance and vendor relationships.