Lumentum Holdings Inc (LITE)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,641,600 | 1,718,000 | 1,277,100 | 1,295,000 | 396,200 |
| Payables | US$ in thousands | 126,300 | 169,400 | 156,700 | 116,900 | 150,800 |
| Payables turnover | 13.00 | 10.14 | 8.15 | 11.08 | 2.63 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,641,600K ÷ $126,300K
= 13.00
The payables turnover ratio for Lumentum Holdings Inc has shown a fluctuating trend over the past five years. The ratio increased from 2.63 in 2020 to 13.00 in 2024, indicating a significant improvement in the company's ability to efficiently manage its accounts payables.
A higher payables turnover ratio suggests that the company is paying its suppliers more frequently within the period under consideration. This can be an indication of strong supplier relationships, effective inventory management, or favorable payment terms negotiated by the company.
The increasing trend in the payables turnover ratio reflects positively on Lumentum Holdings Inc's liquidity position and financial health. It signifies that the company is effectively utilizing its resources to meet its short-term obligations, potentially leading to improved cash flow management and working capital efficiency. This trend may also indicate a focus on optimizing the company's cash conversion cycle and overall operational efficiency.
Peer comparison
Jun 30, 2024