Liquidity Services Inc (LQDT)

Payables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	269,016	223,717	194,785	176,948	162,585
Payables	US$ in thousands	58,693	39,115	41,982	40,611	21,957
Payables turnover		4.58	5.72	4.64	4.36	7.40

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $269,016K ÷ $58,693K
= 4.58

The payables turnover ratio of Liquidity Services Inc has shown fluctuations over the past five years. In 2024, the payables turnover ratio decreased to 4.58 from 5.72 in 2023. This decline indicates that the company took longer to pay its suppliers in 2024 compared to the previous year. However, it is important to note that the payables turnover ratio of 4.58 is still relatively efficient in managing its accounts payable.

When compared to 2022 and 2021, the payables turnover ratios were 4.64 and 4.36, respectively, showing slight variations in the company's payment cycle. In 2020, the payables turnover ratio was significantly higher at 7.40, indicating that the company was paying its suppliers at a faster rate compared to the following years.

Overall, the decreasing trend in payables turnover ratio from 2020 to 2024 may suggest that Liquidity Services Inc is taking a longer time to settle its payables, which could potentially impact its relationships with suppliers and cash flow management. Further analysis of the company's financial health and operational efficiency is recommended to gain a comprehensive understanding of its payables management strategy.