Lumentum Holdings Inc (LITE)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,185,100 | 1,107,700 | 1,198,000 | 924,000 | 959,700 |
| Payables | US$ in thousands | 225,200 | 126,300 | 169,400 | 156,700 | 116,900 |
| Payables turnover | 5.26 | 8.77 | 7.07 | 5.90 | 8.21 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,185,100K ÷ $225,200K
= 5.26
The payables turnover ratio of Lumentum Holdings Inc. exhibits fluctuations over the given period from June 30, 2021, to June 30, 2025. Specifically, the ratio was 8.21 in 2021, indicating a relatively high speed of settling accounts payable during that year. In 2022, the ratio decreased to 5.90, suggesting a slowdown in the turnover of accounts payable, which may imply extended payment periods or changes in supplier credit terms. The ratio recovered somewhat in 2023 to 7.07, indicating an improvement in payable management compared to the previous year. The upward trend continued in 2024 with a ratio of 8.77, reflecting a faster settlement rate relative to earlier years, potentially due to operational improvements or strategic payment cycles. Conversely, in 2025, the ratio declined sharply to 5.26, indicating a significant slowdown in payables turnover, which might be attributed to extended credit terms negotiated with suppliers, liquidity management strategies, or other operational factors affecting payment policies. Overall, the data illustrates variability in the company's payables management practices, with periods of acceleration and deceleration that may warrant further investigation into underlying operational or strategic reasons.
Peer comparison
Jun 30, 2025