Gen Digital Inc. (GEN)
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 | Jul 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 731,000 | 731,000 | 727,000 | 666,000 | 589,000 | 500,000 | 427,000 | 408,000 | 408,000 | 406,000 | 388,000 | 378,000 | 362,000 | 360,000 | 376,000 | 383,000 | 393,000 | 420,000 | 427,000 | 446,000 |
| Payables | US$ in thousands | 66,000 | 62,000 | 66,000 | 65,000 | 77,000 | 75,000 | 66,000 | 71,000 | 63,000 | 83,000 | 81,000 | 76,000 | 52,000 | 67,000 | 66,000 | 60,000 | 87,000 | 157,000 | 120,000 | 135,000 |
| Payables turnover | 11.08 | 11.79 | 11.02 | 10.25 | 7.65 | 6.67 | 6.47 | 5.75 | 6.48 | 4.89 | 4.79 | 4.97 | 6.96 | 5.37 | 5.70 | 6.38 | 4.52 | 2.68 | 3.56 | 3.30 |
March 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $731,000K ÷ $66,000K
= 11.08
Gen Digital Inc.'s payables turnover has been fluctuating over the past few quarters. The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the amount of purchases made on credit to the average accounts payable balance during a specific period. A higher payables turnover ratio indicates a shorter time it takes for the company to pay its suppliers.
From the data provided, we can see that Gen Digital Inc.'s payables turnover has generally been increasing over the past few quarters, which is a positive sign. The trend shows an improvement in the company's ability to manage its accounts payable efficiently.
Specifically, the payables turnover ratio increased from 5.70 in September 2020 to 11.08 in March 2024. This substantial increase indicates that Gen Digital Inc. has been able to make payments to its suppliers at a faster rate, which may suggest improved cash management or negotiation terms with suppliers.
It is essential to monitor this ratio over time to ensure that the trend continues in a favorable direction. Consistent improvement in the payables turnover ratio can indicate efficient working capital management and stronger financial health for the company.
Peer comparison
Mar 31, 2024