Manhattan Associates Inc (MANH)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	592,030	502,507	431,682	388,035	414,417
Payables	US$ in thousands	24,508	25,701	19,625	17,805	20,561
Payables turnover		24.16	19.55	22.00	21.79	20.16

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $592,030K ÷ $24,508K
= 24.16

The payables turnover ratio for Manhattan Associates, Inc. has shown a generally increasing trend over the past five years. The company's ability to efficiently manage its accounts payable has improved, as indicated by the increasing ratio from 13.86 in 2019 to 17.57 in 2023.

A payables turnover ratio of 17.57 in 2023 means that Manhattan Associates, Inc. paid its suppliers approximately 17.57 times during the year, indicating a relatively high frequency compared to the previous years. This may suggest effective management of its accounts payable and a shorter payment cycle.

On average, the company has been able to turn over its payables approximately 15 times per year over the past five years. A higher payables turnover ratio is generally seen as positive, as it indicates that the company is efficiently managing its payments to suppliers.

Overall, the increasing trend in payables turnover for Manhattan Associates, Inc. demonstrates an improvement in the company's liquidity and efficiency in managing its payables over the years.