Jacobs Solutions Inc. (J)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,567,300 | 14,284,200 | 13,551,500 | 13,284,500 | 10,260,800 |
| Payables | US$ in thousands | 1,143,800 | 966,792 | 908,441 | 1,061,750 | 1,072,640 |
| Payables turnover | 13.61 | 14.77 | 14.92 | 12.51 | 9.57 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $15,567,300K ÷ $1,143,800K
= 13.61
Jacobs Solutions Inc.'s payables turnover has shown a fluctuating trend over the past five years. The payables turnover ratio indicates how efficiently the company is managing its payables by paying off its suppliers.
The company's payables turnover ratio was 13.61 in 2023, a decrease from the previous year's ratio of 14.77. This decrease suggests that Jacobs Solutions Inc. took longer to pay off its suppliers in 2023 compared to 2022.
In 2021, the payables turnover ratio was 14.92, which was slightly higher than the ratio in 2020 (12.51) and significantly higher than the ratio in 2019 (9.57). This indicates an improvement in the company's ability to manage its payables efficiently in 2021.
Overall, while there have been fluctuations in Jacobs Solutions Inc.'s payables turnover over the past five years, the company has generally shown a reasonable ability to manage its payables effectively. It is essential for the company to monitor this ratio closely to ensure efficient working capital management and healthy supplier relationships.
Peer comparison
Sep 30, 2023