H&R Block Inc (HRB)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,086,110 | 1,991,570 | 1,923,450 | 1,881,260 | 1,842,090 |
| Payables | US$ in thousands | 144,046 | 155,830 | 159,901 | 160,929 | 198,084 |
| Payables turnover | 14.48 | 12.78 | 12.03 | 11.69 | 9.30 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,086,110K ÷ $144,046K
= 14.48
The payables turnover ratio for H&R Block Inc has demonstrated a consistent upward trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 9.30 in 2021 to 11.69 in 2022, indicating an improvement in the company's ability to efficiently manage its trade payables relative to its cost of goods sold or operating expenses. This upward movement continued into 2023, reaching 12.03, further reflecting enhanced efficiency in settling payables.
The ratio's progression persisted into 2024, with a slight increase to 12.78, suggesting a continued capacity to turn over payables more rapidly than in prior years. The most recent data for 2025 reveals a notable increase to 14.48, representing a significant improvement in the payables turnover ratio over the five-year span.
In an analytical context, the rising payables turnover indicates that H&R Block Inc is increasingly paying its suppliers more promptly, which could be a sign of improved liquidity management or shorter credit terms negotiated with suppliers. Alternatively, it may also reflect a strategic effort to strengthen supplier relationships or reduce trade payables liabilities more efficiently. In conclusion, the company's payables management has become markedly more efficient, as evidenced by the steady rise in the payables turnover ratio over the specified period.
Peer comparison
Jun 30, 2025