Mercury Systems Inc (MRCY)
Payables turnover
| Jun 30, 2025 | Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 657,526 | 655,850 | 669,218 | 672,862 | 650,685 | 649,875 | 655,449 | 638,134 | 657,154 | 641,460 | 621,591 | 606,121 | 593,241 | 571,146 | 569,059 | 557,910 | 538,808 | 511,509 | 474,966 | 458,364 |
| Payables | US$ in thousands | 79,116 | 73,554 | 64,778 | 74,741 | 81,068 | 79,906 | 88,060 | 95,825 | 103,986 | 111,246 | 87,221 | 106,645 | 98,673 | 90,338 | 59,389 | 73,385 | 47,951 | 56,643 | 48,175 | 63,057 |
| Payables turnover | 8.31 | 8.92 | 10.33 | 9.00 | 8.03 | 8.13 | 7.44 | 6.66 | 6.32 | 5.77 | 7.13 | 5.68 | 6.01 | 6.32 | 9.58 | 7.60 | 11.24 | 9.03 | 9.86 | 7.27 |
June 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $657,526K ÷ $79,116K
= 8.31
The payables turnover ratio for Mercury Systems Inc exhibits notable fluctuations over the analyzed period. At the end of September 2020, the ratio stood at 7.27, indicating the company’s ability to pay its suppliers approximately 7.3 times during that quarter. The ratio increased significantly by December 2020 to 9.86, reflecting an improvement in the company’s payment efficiency or possibly a change in payables management. This upward trend persisted into March 2021 with a ratio of 9.03, before reaching a peak of 11.24 in June 2021, suggesting the company was paying its trade payables more rapidly relative to its cost of goods sold or purchases during that period.
Subsequently, the ratio declined to 7.60 in September 2021 and further to 9.58 in December 2021, maintaining a relatively high but slightly lower level than the previous peak. Moving into 2022, the ratio showed a downward trend, notably decreasing to 6.32 in March 2022 and further to 6.01 in June 2022. It continued to decline through September 2022 (5.68), marking a period of slower payment cycles relative to the company's purchases.
Throughout 2022 and into 2023, the ratio stabilized at modest levels, reaching 7.13 in December 2022, then fluctuating slightly to 5.77 in March 2023, and hovering around similar levels in subsequent quarters. Notably, from June 2023 onward, there was an observable upward trend: the ratio increased to 6.32 in June 2023, then to 6.66 in September 2023, and further to 7.44 by the end of 2023. The trend continued into early 2024 with ratios of 8.13 in March, 8.03 in June, and a notable increase to 9.00 in September 2024, indicating a period of faster payables turnover.
Most recently, the ratios for the first half of 2025 show the trend continuing with values of 10.33 in December 2024, 8.92 in March 2025, and 8.31 in June 2025. These figures suggest a consistent pattern of payment normalization after earlier periods of slower turnover, with the company generally paying suppliers more rapidly than in previous years’ lows.
Overall, Mercury Systems Inc’s payables turnover ratio has experienced periods of both acceleration and deceleration. The initial increase through late 2020 to mid-2021 points to more prompt payment practices or improved supply chain management. The subsequent decline during 2022 indicates a possible deliberate elongation of payment cycles, potentially to optimize working capital. The upward trend from late 2022 into 2025 suggests a shift towards paying suppliers more promptly, which may reflect improved liquidity or strategic changes in payables management.
Peer comparison
Jun 30, 2025