Jacobs Solutions Inc. (J)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,041,100 | 15,567,300 | 14,284,200 | 13,551,500 | 13,284,500 |
| Payables | US$ in thousands | 1,029,140 | 922,355 | 966,792 | 908,441 | 1,061,750 |
| Payables turnover | 10.73 | 16.88 | 14.77 | 14.92 | 12.51 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $11,041,100K ÷ $1,029,140K
= 10.73
Jacobs Solutions Inc.'s payables turnover ratio has fluctuated over the past five years. The payables turnover ratio measures how efficiently a company manages its trade payables by indicating the number of times a company pays off its suppliers during a specific period.
In the most recent year, as of Sep 30, 2024, Jacobs Solutions Inc. had a payables turnover ratio of 10.73. This implies that the company paid off its suppliers approximately 10.73 times during that year. It is important to note that a lower payables turnover ratio may indicate that the company is taking longer to pay off its suppliers, possibly leading to strained relationships or missed discount opportunities.
Comparing this to the previous years, the payables turnover ratios were 16.88 in 2023, 14.77 in 2022, 14.92 in 2021, and 12.51 in 2020. The decline in the payables turnover ratio from the peak in 2023 suggests that Jacobs Solutions Inc. may have taken longer to pay off its suppliers in 2024, which could affect its relationships with vendors and impact cash flow management.
It is essential for Jacobs Solutions Inc. to closely monitor its payables turnover ratio and strive for a balance that ensures timely payments to suppliers while maximizing cash flow efficiency. Trends in this ratio can provide valuable insights into the company's liquidity and working capital management.
Peer comparison
Sep 30, 2024