Dorian LPG Ltd (LPG)

Payables turnover

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 Jun 30, 2020
Cost of revenue (ttm) US$ in thousands 200,652 198,199 193,435 197,234 195,476 187,278 181,086 169,991 161,703 158,301 159,545 157,993 161,227 164,517 165,355 170,705 168,227 165,624 163,115 155,876
Payables US$ in thousands 11,550 9,251 9,962 7,994 10,186 11,435 12,451 11,268 10,807 9,966 8,663 7,928 9,541 9,272 9,432 14,151 9,831 11,274 12,114 11,628
Payables turnover 17.37 21.42 19.42 24.67 19.19 16.38 14.54 15.09 14.96 15.88 18.42 19.93 16.90 17.74 17.53 12.06 17.11 14.69 13.46 13.41

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $200,652K ÷ $11,550K
= 17.37

The payables turnover ratio for Dorian LPG Ltd has shown some fluctuations over the period from June 30, 2020, to March 31, 2025. The ratio measures how efficiently the company manages its payables by comparing the company's cost of goods sold to its average accounts payable balance.

The trend in the payables turnover ratio for Dorian LPG Ltd shows an overall increasing pattern until September 30, 2022, reflecting a quicker turnover of payables during this period. This indicates that the company was paying off its suppliers at a faster rate, which can sometimes indicate strong bargaining power or good relationships with suppliers.

However, from December 31, 2022, to September 30, 2024, the ratio fluctuates, with some decreases and increases. This could suggest changes in the company's payment policies, vendor relationships, or operational challenges that impact the payment cycle.

The significant increase in the payables turnover ratio from June 30, 2024, to September 30, 2024, followed by a decrease by December 31, 2024, and a subsequent increase by March 31, 2025, indicates variability in how quickly Dorian LPG Ltd is paying its suppliers.

Overall, a higher payables turnover ratio can indicate efficient management of supplier payments, while a lower ratio may suggest potential liquidity issues or challenges in meeting payment obligations. Investors and stakeholders closely monitor this ratio to assess the company's liquidity, operational efficiency, and supplier relationships.