KLA-Tencor Corporation (KLAC)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,928,070 | 4,218,310 | 3,592,440 | 2,772,160 | 2,449,560 |
| Payables | US$ in thousands | 359,487 | 371,026 | 443,338 | 342,083 | 264,280 |
| Payables turnover | 10.93 | 11.37 | 8.10 | 8.10 | 9.27 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,928,070K ÷ $359,487K
= 10.93
The payables turnover ratio for KLA-Tencor Corporation has fluctuated over the past five years, ranging from 8.10 to 11.37. It indicates how efficiently the company is managing its accounts payable during the respective fiscal years.
A higher payables turnover ratio generally suggests that the company is paying off its suppliers more quickly, which could be a result of effective working capital management or negotiation strategies with suppliers. Conversely, a lower ratio may indicate that the company is taking longer to pay its obligations to suppliers, potentially resulting in strained supplier relationships or missed discounts.
In 2024, the payables turnover ratio decreased to 10.93 from 11.37 in the previous year. This may imply that KLA-Tencor Corporation took slightly longer to pay its suppliers in 2024 compared to 2023. However, it is important to further investigate the reasons behind this change, such as any shifts in payment terms, supply chain dynamics, or company's financial strategy.
Over the five-year period, the payables turnover ratio has shown some volatility, and it would be beneficial to compare this ratio with industry averages or benchmarks to gain a better understanding of KLA-Tencor's performance in managing its accounts payable. Further analysis and context are essential to fully interpret the implications of these fluctuations and their impact on the company's overall financial health and operational efficiency.
Peer comparison
Jun 30, 2024