Manhattan Associates Inc (MANH)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	643,066	592,030	502,507	431,682	388,035
Payables	US$ in thousands	26,615	24,508	25,701	19,625	17,805
Payables turnover		24.16	24.16	19.55	22.00	21.79

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $643,066K ÷ $26,615K
= 24.16

Based on the provided data, Manhattan Associates Inc's payables turnover has shown fluctuations over the past five years. The payables turnover ratio indicates how efficiently the company is managing its outstanding supplier debts.

In December 31, 2020, the payables turnover was 21.79, which implies that Manhattan Associates Inc was able to pay off its suppliers approximately 21.79 times during that year. The ratio slightly improved in December 31, 2021, reaching 22.00, indicating a slight increase in the efficiency of managing supplier payments.

However, there was a decrease in the payables turnover ratio in December 31, 2022, dropping to 19.55. This could suggest a lengthening of the payment period to suppliers or a decrease in the volume of purchases on credit.

In December 31, 2023, and December 31, 2024, Manhattan Associates Inc's payables turnover significantly increased to 24.16. This surge indicates a notable improvement in the company's ability to settle its supplier obligations promptly.

Overall, the trend in payables turnover for Manhattan Associates Inc reflects some volatility but shows an upward trajectory in recent years, indicating enhanced efficiency in managing supplier payments.