Kulicke and Soffa Industries Inc (KLIC)

Payables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	437,478	383,836	755,300	820,678	325,201
Payables	US$ in thousands	58,847	49,302	67,311	154,636	57,688
Payables turnover		7.43	7.79	11.22	5.31	5.64

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $437,478K ÷ $58,847K
= 7.43

Payables turnover, a financial ratio that measures how efficiently a company manages its accounts payable, has been fluctuating for Kulicke and Soffa Industries Inc over the past five years.

In 2024, the payables turnover ratio was 7.43, indicating that the company took approximately 7.43 times to pay off its accounts payable during the year. This was a decrease from the previous year's ratio of 7.79 and from the ratio of 11.22 in 2022, suggesting a potential slowdown in the company's ability to manage its payables effectively.

Comparing to the ratio in 2021 and 2020 which were 5.31 and 5.64 respectively, the higher ratios in the more recent years show an improvement in managing payables turnover. Despite the fluctuation in the ratio, a higher payables turnover ratio generally indicates that the company is paying off its suppliers more quickly, which can be positive for cash flow management and supplier relationships.

Overall, Kulicke and Soffa Industries Inc should continue to monitor and manage their payables turnover to ensure efficient use of working capital and maintain strong relationships with suppliers.