DXC Technology Co (DXC)
Payables turnover
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 13,217,000 | 14,911,000 | 15,154,000 | 15,327,000 | 15,616,000 | 13,738,000 | 14,172,000 | 14,699,000 | 15,122,000 | 17,221,000 | 17,749,000 | 18,678,000 | 19,384,000 | 22,490,000 | 22,984,000 | 25,598,000 | 25,602,000 | 18,387,000 | 14,550,000 | 8,281,000 |
| Payables | US$ in thousands | 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 | 1,598,000 | 1,576,000 | 1,603,000 | 1,517,000 |
| Payables turnover | 15.62 | 17.14 | 24.52 | 21.86 | 19.97 | 16.12 | 16.54 | 18.49 | 18.00 | 22.69 | 24.52 | 21.79 | 21.21 | 26.40 | 17.09 | 16.82 | 16.02 | 11.67 | 9.08 | 5.46 |
March 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $13,217,000K ÷ $846,000K
= 15.62
The payables turnover ratio for DXC Technology Co has displayed fluctuations over the past few quarters. The ratio has generally been on an upward trend since the end of 2019, indicating a more efficient management of payables during this period.
Specifically, the payables turnover ratio increased from 5.46 at the end of September 2019 to 15.62 at the end of March 2024. This significant improvement suggests that the company is paying off its suppliers more frequently within a given period, reflecting a positive relationship with suppliers and potentially better bargaining power.
Although there have been fluctuations in the ratio over the quarters, it generally remains at a healthy level, peaking at 26.40 at the end of December 2020. This uptrend in payables turnover signifies the company's ability to efficiently manage its trade payables and suggests a healthy liquidity position.
Overall, based on the payables turnover ratio analysis, DXC Technology Co appears to be efficiently managing its payables, maintaining healthy relationships with suppliers, and potentially benefiting from improved cash flow management.
Peer comparison
Mar 31, 2024