Digi International Inc (DGII)

Payables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	192,646	171,939	141,975	135,299	135,168
Payables	US$ in thousands	17,148	32,373	22,586	28,067	21,183
Payables turnover		11.23	5.31	6.29	4.82	6.38

September 30, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $192,646K ÷ $17,148K
= 11.23

The payables turnover ratio is a measure of how efficiently a company manages its payments to suppliers. Digi International, Inc.'s payables turnover has shown significant improvement, increasing from 6.24 in 2019 to 11.00 in 2023. This indicates that the company has been able to pay off its suppliers more frequently within the year, reflecting stronger liquidity and potentially better negotiation power with suppliers. The substantial increase in the payables turnover ratio suggests that Digi International, Inc. has been managing its payables more effectively in recent years, which can be a positive indicator of financial health and operational efficiency.