The Marzetti Company (MZTI)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,453,480 | 1,439,460 | 1,433,960 | 1,320,670 | 1,080,340 |
| Payables | US$ in thousands | 117,962 | 118,811 | 111,758 | 114,972 | 110,338 |
| Payables turnover | 12.32 | 12.12 | 12.83 | 11.49 | 9.79 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,453,480K ÷ $117,962K
= 12.32
The payables turnover ratio for The Marzetti Company demonstrates a gradual upward trend over the period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 9.79 times in 2021 to 11.49 times in 2022, signifying an improvement in the company's efficiency in settling its accounts payable obligations relative to its credit purchases during that year. This upward movement continued into 2023, with the ratio reaching 12.83 times, indicating an even more efficient management of payables.
In the subsequent year, 2024, there was a slight decrease to 12.12 times, which could imply a marginal extension in the duration of payment or a shift in purchasing or payment policies. However, this was followed by a modest increase to 12.32 times in 2025, suggesting a slight reversal towards earlier levels of payable turnover efficiency.
Overall, the trend suggests that The Marzetti Company has been progressively optimizing its accounts payable management, paying suppliers more promptly over the years, with some minor fluctuations. A higher payables turnover ratio generally reflects quicker settlement of obligations, which can be associated with favorable credit terms or a shorter cash conversion cycle.
Peer comparison
Jun 30, 2025