DXC Technology Co (DXC)

Payables turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	10,096,000	10,632,000	10,852,000	11,058,000	10,925,000	10,730,000	10,893,000	11,035,000	11,246,000	11,665,000	12,045,000	12,358,000	12,683,000	13,083,000	13,237,000	13,712,000	14,086,000	14,298,000	14,792,000	14,908,000
Payables	US$ in thousands	549,000	563,000	708,000	676,000	846,000	870,000	618,000	701,000	782,000	852,000	857,000	795,000	840,000	759,000	724,000	857,000	914,000	852,000	1,345,000	1,522,000
Payables turnover		18.39	18.88	15.33	16.36	12.91	12.33	17.63	15.74	14.38	13.69	14.05	15.54	15.10	17.24	18.28	16.00	15.41	16.78	11.00	9.80

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,096,000K ÷ $549,000K
= 18.39

The payables turnover ratio of DXC Technology Co has shown a fluctuating trend over the periods analyzed. It increased from 9.80 as of June 30, 2020, to a peak of 18.88 as of December 31, 2024. This indicates that the company has been able to manage its accounts payables more efficiently, converting them into purchases or cash payments at a faster rate.

However, there were periods of slight decline in the ratio such as in December 31, 2023 where it dropped to 12.33. This could suggest a temporary slowdown in the company's payables management efficiency during that period.

Overall, the upward trend observed in the payables turnover ratio reflects a positive sign of the company's ability to manage its trade credit effectively and might indicate successful negotiations with suppliers for extended payment terms or improved working capital management strategies.