Mercury Systems Inc (MRCY)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 639,374 | 657,154 | 593,241 | 538,808 | 439,766 |
| Payables | US$ in thousands | 81,068 | 103,986 | 98,673 | 47,951 | 41,877 |
| Payables turnover | 7.89 | 6.32 | 6.01 | 11.24 | 10.50 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $639,374K ÷ $81,068K
= 7.89
Mercury Systems Inc's payables turnover ratio has shown fluctuation over the past five years, as indicated by the following values: 7.89 in 2024, 6.32 in 2023, 6.01 in 2022, 11.24 in 2021, and 10.50 in 2020. The payables turnover ratio measures how efficiently a company manages its payables by showing how many times a company pays its average accounts payable balance during a period.
In analyzing the trend, we can observe that the payables turnover ratio has generally been at a good level over the years, indicating that Mercury Systems Inc has been efficient in managing its payables. The decrease in the ratio from 11.24 in 2021 to 6.01 in 2022 may suggest that the company took longer to pay its suppliers in 2022, which could be due to various reasons such as changes in payment terms or business operations.
However, the consecutive increase in the ratio in the subsequent years (6.01 in 2022 to 6.32 in 2023 to 7.89 in 2024) indicates improvement in the company's payables management efficiency. It is important for Mercury Systems Inc to continue monitoring and managing its payables effectively to maintain a healthy balance between timely payments to suppliers and cash flow optimization.
Peer comparison
Jun 30, 2024