Manhattan Associates Inc (MANH)

Payables turnover

		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	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	643,066	629,013	623,671	610,808	592,030	570,242	550,298	528,112	502,507	493,800	465,249	442,046	431,682	345,604	336,526	321,989	321,203	323,936	334,273	350,028
Payables	US$ in thousands	26,615	23,183	25,581	26,401	24,508	25,253	26,124	25,357	25,701	27,360	25,154	24,586	19,625	21,647	22,031	18,327	17,805	18,038	16,262	22,517
Payables turnover		24.16	27.13	24.38	23.14	24.16	22.58	21.06	20.83	19.55	18.05	18.50	17.98	22.00	15.97	15.28	17.57	18.04	17.96	20.56	15.55

December 31, 2024 calculation

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

The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its suppliers during a specific period.

Analyzing Manhattan Associates Inc's payables turnover ratio from March 31, 2020, to December 31, 2024, reveals fluctuations in the company's payment practices. The ratio ranged from a low of 15.28 on June 30, 2021, to a high of 27.13 on September 30, 2024.

A higher payables turnover ratio indicates that Manhattan Associates Inc is paying off its suppliers more frequently within the period. This could signify strong cash flow management or negotiating favorable terms with suppliers. Conversely, a lower ratio may suggest delayed payments or inefficient management of accounts payable.

Over the observed period, Manhattan Associates Inc's payables turnover ratio showed varying trends, demonstrating the company's changing payment habits and relationships with suppliers. It is essential for stakeholders to monitor these fluctuations to understand how efficiently the company is managing its payables and maintaining strong relationships with its vendors.