Lumentum Holdings Inc (LITE)
Payables turnover
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,185,100 | 1,140,400 | 1,162,800 | 1,163,000 | 1,144,900 | 1,150,000 | 1,077,600 | 1,114,600 | 1,179,300 | 1,138,500 | 1,114,000 | 1,013,400 | 924,000 | 912,900 | 919,200 | 929,200 | 959,700 | 962,800 | 973,400 | 992,900 |
| Payables | US$ in thousands | 225,200 | 195,200 | 184,700 | 163,100 | 126,300 | 133,400 | 163,000 | 134,600 | 169,400 | 198,700 | 205,600 | 205,700 | 156,700 | 126,800 | 118,200 | 101,600 | 116,900 | 104,700 | 111,300 | 146,000 |
| Payables turnover | 5.26 | 5.84 | 6.30 | 7.13 | 9.06 | 8.62 | 6.61 | 8.28 | 6.96 | 5.73 | 5.42 | 4.93 | 5.90 | 7.20 | 7.78 | 9.15 | 8.21 | 9.20 | 8.75 | 6.80 |
June 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,185,100K ÷ $225,200K
= 5.26
The payables turnover for Lumentum Holdings Inc over the observed period exhibits notable fluctuations. At the beginning of the period, as of September 30, 2020, the ratio stood at 6.80, indicating the company was settling its accounts payable approximately 6.8 times annually. This ratio increased significantly by December 31, 2020, reaching 8.75, and further rose to 9.20 by March 31, 2021, reflecting an improvement in the efficiency in paying suppliers.
Throughout 2021, the payables turnover remained relatively high, averaging around 8.50 to 9.15, with a slight decrease toward the end of the year. In early 2022, the ratio declined to 7.20 by March 31 and experienced a further downward trend to a low of 4.93 by September 30, 2022. This indicates a slowdown in paying suppliers relative to the previous periods.
In subsequent quarters, the ratio showed signs of recovery but did not return to the early 2021 levels. It increased modestly to 5.42 by December 2022 and to 5.73 by March 2023. The upward trend continued throughout 2023, with the ratio reaching 6.96 in June and 8.28 in September, suggesting an improvement in the company's payables management.
However, the ratio began to decline again toward the end of 2023, with 6.61 in December 2023, and then showed a marked increase to 8.62 in March 2024. It remained elevated into mid-2024, with a value of 9.06 on June 30, 2024, before dropping to 7.13 by September 2024. The subsequent quarters saw the ratio decrease to 6.30 in December 2024 and further decline to 5.84 in March 2025, with a slight decrease to 5.26 projected for June 2025.
Overall, the payables turnover rate in Lumentum Holdings Inc has demonstrated considerable variability over the period, with periods of both accelerated and decelerated payments to suppliers, reflecting potential shifts in operational strategies, liquidity management, supplier relationships, or external market conditions. The fluctuations suggest the company’s approach to managing its accounts payable has evolved, possibly balancing liquidity considerations against supplier terms over time.
Peer comparison
Jun 30, 2025