Keysight Technologies Inc (KEYS)
Payables turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,341,000 | 3,371,000 | 3,255,000 | 2,991,000 | 3,143,000 |
| Payables | US$ in thousands | 286,000 | 348,000 | 287,000 | 224,000 | 253,000 |
| Payables turnover | 11.68 | 9.69 | 11.34 | 13.35 | 12.42 |
October 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,341,000K ÷ $286,000K
= 11.68
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable outstanding during a period. Higher ratios indicate a shorter time it takes for the company to pay its suppliers.
Keysight Technologies Inc's payables turnover has varied over the past five years, with the ratio ranging from 5.66 to 7.54. In the most recent year, as of October 31, 2023, the payables turnover ratio was 6.76, indicating that the company paid its suppliers approximately 6.76 times during the year. This suggests that, on average, suppliers were paid every 53.95 days (365 days divided by 6.76), a slight decrease from the previous year.
The consistent range of payables turnover ratios over the years may indicate that Keysight Technologies Inc has a good relationship with its suppliers and is effectively managing its payables. However, a detailed analysis of the company's payment terms and supplier relationships would provide additional insights into its payables management efficiency.
Peer comparison
Oct 31, 2023