Hologic Inc (HOLX)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,802,500 | 1,958,900 | 1,865,400 | 1,836,500 | 1,548,900 |
| Payables | US$ in thousands | 203,800 | 175,200 | 197,700 | 215,900 | 178,800 |
| Payables turnover | 8.84 | 11.18 | 9.44 | 8.51 | 8.66 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,802,500K ÷ $203,800K
= 8.84
The payables turnover ratio for Hologic Inc has fluctuated over the past five years, ranging from 8.51 to 11.18. This ratio indicates the company's efficiency in managing its accounts payable by measuring how many times the company pays off its suppliers in a given period.
A higher payables turnover ratio suggests that the company is managing its payables efficiently, paying suppliers more frequently within the period. In contrast, a lower ratio may indicate that the company is taking longer to pay its suppliers.
Hologic Inc's payables turnover has been relatively stable over the years, with a slight decrease in 2021 followed by an increase in 2022. This indicates that the company has been consistently managing its payables effectively, albeit with some fluctuations. Further analysis of the company's payables management practices and payment terms with suppliers may provide additional insights into the efficiency of its working capital management.
Peer comparison
Sep 30, 2024