Mercury Systems Inc (MRCY)
Payables turnover
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 639,374 | 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 | 439,766 | 416,126 | 402,224 | 385,019 |
| Payables | US$ in thousands | 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 | 41,877 | 50,089 | 35,988 | 34,940 |
| Payables turnover | 7.89 | 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 | 10.50 | 8.31 | 11.18 | 11.02 |
June 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $639,374K ÷ $81,068K
= 7.89
The payables turnover ratio for Mercury Systems Inc has fluctuated over the past several quarters, indicating varying trends in how efficiently the company is managing its accounts payable. The payables turnover ratio measures how many times a company pays off its accounts payable balance during a specific period.
The recent payables turnover ratio for Jun 30, 2024, stands at 7.89, showing that Mercury Systems Inc paid off its accounts payable balance approximately 7.89 times during the quarter. This implies an improvement compared to the previous quarter, where the ratio was 8.13.
Looking at the trend over the past few quarters, there have been fluctuations in the payables turnover ratio. The ratio has seen peaks and troughs, but generally, it has been on an upward trend since the low point in March 2021 when it was 5.77. This suggests that the company has been more efficient in managing its accounts payable in recent quarters.
A higher payables turnover ratio signifies that the company is managing its payables effectively by paying them off more frequently, potentially taking advantage of supplier discounts or avoiding late payment penalties. On the other hand, a lower ratio may indicate a longer payment cycle, possibly hinting at cash flow issues or delays in settling outstanding obligations.
Overall, a rising payables turnover ratio for Mercury Systems Inc indicates an improvement in how the company is managing its accounts payable, suggesting a positive trend in its financial management practices.
Peer comparison
Jun 30, 2024