Walt Disney Company (DIS)

Payables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	20,542,000	20,670,000	18,582,000	16,256,000	20,346,000
Payables	US$ in thousands	14,796,000	15,125,000	16,205,000	16,357,000	13,183,000
Payables turnover		1.39	1.37	1.15	0.99	1.54

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $20,542,000K ÷ $14,796,000K
= 1.39

The payables turnover ratio for Walt Disney Company has shown fluctuations over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times it pays off its suppliers during a period.

In 2024, the payables turnover ratio increased to 1.39 from 1.37 in 2023, demonstrating a slight improvement in the company's ability to settle its payables. This increase suggests that Walt Disney may be better managing its accounts payable turnover efficiency compared to the prior year.

Looking back, in 2022, the payables turnover ratio was 1.15, which was lower compared to the two preceding years. However, in 2021, the ratio improved to 0.99, indicating that the company paid off its suppliers almost once during the year.

The peak payables turnover ratio recorded was 1.54 in 2020, which suggests that Walt Disney efficiently managed its accounts payables that year. Overall, the fluctuations in the payables turnover ratio demonstrate varying degrees of efficiency in managing accounts payable over the past five years.