Keysight Technologies Inc (KEYS)
Payables turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,470,000 | 3,341,000 | 3,371,000 | 3,255,000 | 2,991,000 |
| Payables | US$ in thousands | 313,000 | 286,000 | 348,000 | 287,000 | 224,000 |
| Payables turnover | 11.09 | 11.68 | 9.69 | 11.34 | 13.35 |
October 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,470,000K ÷ $313,000K
= 11.09
Keysight Technologies Inc has shown a fluctuating trend in its payables turnover ratio over the past five years. The payables turnover ratio measures how quickly a company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more frequently within a year.
In 2020, the payables turnover ratio was relatively high at 13.35, suggesting that the company was paying its suppliers more frequently. However, this ratio decreased in 2021 to 11.34, indicating a slight slowdown in the payment to suppliers. In 2022, the ratio dropped further to 9.69, signaling a potential extension in the payment period to suppliers.
Subsequently, in 2023, the payables turnover ratio increased to 11.68, indicating an improvement in the payment cycle by the company. This positive trend continued in 2024, with the ratio reaching 11.09, although still slightly below the level observed in 2020.
Overall, it is essential to monitor the payables turnover ratio to assess the efficiency of the company in managing its accounts payable. A declining ratio could indicate potential cash flow issues or delays in paying suppliers, while an increasing ratio may suggest a more efficient management of supplier payments.
Peer comparison
Oct 31, 2024