Gen Digital Inc. (GEN)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 731,000 | 589,000 | 408,000 | 362,000 | 393,000 |
| Payables | US$ in thousands | 66,000 | 77,000 | 63,000 | 52,000 | 87,000 |
| Payables turnover | 11.08 | 7.65 | 6.48 | 6.96 | 4.52 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $731,000K ÷ $66,000K
= 11.08
The payables turnover ratio of Gen Digital Inc. has shown an improving trend over the past five years. It increased from 4.52 in 2020 to 11.08 in 2024. This indicates that the company has been managing its accounts payable more efficiently by paying off its suppliers at a faster rate.
A higher payables turnover ratio suggests that Gen Digital Inc. is taking less time to pay its suppliers, which can be advantageous as it can lead to better relationships with suppliers and potentially negotiating better credit terms.
The increase in the payables turnover ratio from 2020 to 2024 indicates that Gen Digital Inc. is improving its liquidity position and working capital management. This can potentially free up cash for other operational needs or investment opportunities.
Overall, the increasing trend in the payables turnover ratio reflects positively on the company's ability to manage its accounts payable effectively and efficiently.
Peer comparison
Mar 31, 2024