Intuit Inc (INTU)
Payables turnover
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,582,000 | 5,708,000 | 5,542,000 | 3,822,000 | 2,769,000 |
| Payables | US$ in thousands | 721,000 | 638,000 | 737,000 | 623,000 | 305,000 |
| Payables turnover | 9.13 | 8.95 | 7.52 | 6.13 | 9.08 |
July 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,582,000K ÷ $721,000K
= 9.13
The payables turnover ratio for Intuit Inc has shown a generally increasing trend over the past five years, from 9.08 in 2020 to 9.13 in 2024. This indicates that the company is paying its suppliers more frequently each year.
A higher payables turnover ratio can imply that the company is managing its accounts payable efficiently by paying off its obligations in a timely manner. This could be a positive indicator of strong supplier relationships and effective cash flow management.
However, it is also important to consider potential implications of a very high payables turnover ratio, such as the company potentially missing out on available trade credit or discounts if it is paying too quickly.
Overall, the increasing trend in Intuit Inc's payables turnover ratio suggests a proactive approach to managing supplier payments, but further analysis and comparison to industry benchmarks would be needed to fully assess the company's payables management efficiency.
Peer comparison
Jul 31, 2024