Dorian LPG Ltd (LPG)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 158,113 | 100,226 | 101,188 | 108,450 | 94,035 |
| Payables | US$ in thousands | 10,186 | 10,807 | 9,541 | 9,831 | 13,553 |
| Payables turnover | 15.52 | 9.27 | 10.61 | 11.03 | 6.94 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $158,113K ÷ $10,186K
= 15.52
Dorian LPG Ltd's payables turnover ratio has exhibited fluctuations over the past five years. The company's payables turnover increased from 6.94 in 2020 to 15.52 in 2024, indicating a significant improvement in managing its accounts payable. This suggests that Dorian LPG Ltd is paying suppliers more frequently within a given period, which can be a positive sign of efficient working capital management.
In 2021, the payables turnover ratio was 11.03, which was slightly lower than 2024 but still higher compared to 2020. The decrease observed in 2022 and 2023, with ratios of 10.61 and 9.27 respectively, may raise concerns about the company's ability to settle its payables in a timely manner during those years.
Overall, the increasing trend in payables turnover from 2020 to 2024 indicates an improvement in Dorian LPG Ltd's efficiency in managing its accounts payable, which can enhance cash flow management and relationships with suppliers.