DXC Technology Co (DXC)
Payables turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,770,000 | 10,576,000 | 11,246,000 | 12,683,000 | 14,086,000 |
| Payables | US$ in thousands | 549,000 | 846,000 | 782,000 | 840,000 | 914,000 |
| Payables turnover | 17.80 | 12.50 | 14.38 | 15.10 | 15.41 |
March 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $9,770,000K ÷ $549,000K
= 17.80
The payables turnover of DXC Technology Co, a measure of how quickly the company pays its suppliers, has shown a generally decreasing trend over the past five years. In March 2021, the payables turnover was 15.41, decreasing to 15.10 by March 2022. This downward trend continued, with further decreases to 14.38 in March 2023 and 12.50 in March 2024. However, there was a notable increase in payables turnover to 17.80 by March 2025.
The declining trend in payables turnover from 2021 to 2024 may indicate that DXC Technology Co took longer to pay its suppliers during those years. This could potentially strain relationships with suppliers or result in missed discounts for early payment.
The significant increase in payables turnover in 2025 may suggest that DXC Technology Co improved its payment efficiency, possibly negotiating better terms with suppliers or streamlining its payment processes.
Overall, analyzing the payables turnover of DXC Technology Co provides insight into the company's management of its accounts payable and its relationships with suppliers over the past five years. The fluctuating trend in payables turnover levels highlights the importance of monitoring this ratio to assess the company's financial health and operational efficiency.
Peer comparison
Mar 31, 2025