Manhattan Associates Inc (MANH)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	342,564	337,403	320,541	303,789
Payables	US$ in thousands	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	20,561	21,190	17,272	16,940
Payables turnover		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	16.66	15.92	18.56	17.93

December 31, 2023 calculation

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

Manhattan Associates, Inc.'s payables turnover ratio shows a consistent upward trend over the past eight quarters, indicating the company's efficiency in managing its accounts payable. The higher the turnover ratio, the faster the company is paying its suppliers, which can be seen in Manhattan Associates' increasing values. This suggests that the company is able to settle its payables more frequently within a given period, potentially benefiting from discounts and maintaining good relationships with suppliers.

In the latest quarter, Q4 2023, Manhattan Associates achieved a payables turnover of 17.57, marking a significant improvement compared to the same quarter in the previous year, Q4 2022, where the ratio stood at 13.94. This substantial increase in payables turnover indicates that the company has been effectively managing its trade credit obligations and is making timely payments to its suppliers.

Overall, Manhattan Associates, Inc.'s consistent improvement in payables turnover reflects positively on its liquidity management and financial health. A higher payables turnover ratio is generally perceived as a favorable sign of operational efficiency and effective cash flow management within the company.