Medtronic PLC (MDT)

Payables turnover

		Apr 26, 2024	Jan 26, 2024	Oct 27, 2023	Jul 28, 2023	Apr 28, 2023	Jan 27, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	Apr 24, 2020	Jan 24, 2020	Oct 25, 2019	Jul 26, 2019
Cost of revenue (ttm)	US$ in thousands	24,378,000	23,937,000	23,847,000	23,457,000	23,287,000	23,434,000	23,047,000	23,017,000	23,007,000	22,307,000	22,466,000	22,671,000	22,452,000	21,855,000	21,667,000	21,407,000	21,394,000	21,809,000	21,704,000	21,469,000
Payables	US$ in thousands	2,410,000	1,992,000	2,174,000	2,239,000	2,662,000	2,209,000	2,198,000	2,180,000	2,276,000	1,985,000	1,917,000	1,864,000	2,106,000	1,816,000	1,902,000	1,720,000	1,996,000	1,945,000	1,965,000	1,906,000
Payables turnover		10.12	12.02	10.97	10.48	8.75	10.61	10.49	10.56	10.11	11.24	11.72	12.16	10.66	12.03	11.39	12.45	10.72	11.21	11.05	11.26

April 26, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $24,378,000K ÷ $2,410,000K
= 10.12

The payables turnover ratio for Medtronic PLC has fluctuated over the past two years, ranging from a low of 8.75 to a high of 12.45. The average payables turnover ratio during this period was approximately 10.99.

A payables turnover ratio indicates how efficiently a company is managing its payments to suppliers. A higher ratio suggests that the company is paying its suppliers more quickly, which could indicate strong liquidity and good relationships with suppliers. On the other hand, a lower ratio may indicate that the company is taking longer to pay its bills, which could potentially strain supplier relationships or signal liquidity issues.

In the case of Medtronic PLC, the payables turnover ratio has generally been above the average, indicating that the company is managing its payables efficiently. However, there have been some fluctuations throughout the period, suggesting variations in the payment practices of the company. Further analysis of the company's payment policies and changes in supplier relationships may provide additional insights into these fluctuations.