Mercury Systems Inc (MRCY)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 657,526 | 639,374 | 657,154 | 593,241 | 538,808 |
| Payables | US$ in thousands | 79,116 | 81,068 | 103,986 | 98,673 | 47,951 |
| Payables turnover | 8.31 | 7.89 | 6.32 | 6.01 | 11.24 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $657,526K ÷ $79,116K
= 8.31
The payables turnover ratio for Mercury Systems Inc. demonstrates notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio was 11.24 in 2021, indicating a relatively high velocity in paying its suppliers during that year. This suggests that the company was settling its accounts payable approximately eleven times within the fiscal year, reflecting efficient cash management or possibly favorable credit terms.
However, by June 30, 2022, the ratio declined markedly to 6.01, signifying a reduction in the frequency of paying suppliers within the year. This decrease could imply that Mercury Systems Inc. extended its payment terms or experienced delays in settling its liabilities, potentially affecting supplier relationships or indicating cash flow constraints.
In 2023, the payables turnover slightly increased to 6.32, indicating a marginal improvement in paying suppliers, although it remained considerably lower than the 2021 figure. The subsequent year, June 30, 2024, saw the ratio rise to 7.89, suggesting a further shift toward more rapid payments and potentially a move to strengthen supplier relationships or optimize working capital.
By June 30, 2025, the ratio reached 8.31, continuing this upward trend. The consistent increase over these two years suggests a gradual acceleration in settling payables, possibly reflecting improved liquidity, changes in credit policy, or strategic efforts to reduce outstanding liabilities.
Overall, the trend from 2021 to 2025 indicates a transition from higher to somewhat more frequent payments, with the company demonstrating adaptability in its accounts payable practices over time. The initial sharp decline from 11.24 to 6.01 signals a significant change in payment behavior or credit terms, followed by a gradual recovery and stabilization in the subsequent years.
Peer comparison
Jun 30, 2025