OSI Systems Inc (OSIS)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,307,180 | 1,100,580 | 1,015,840 | 1,000,310 | 1,024,710 |
| Payables | US$ in thousands | 191,149 | 139,011 | 125,204 | 141,263 | 84,940 |
| Payables turnover | 6.84 | 7.92 | 8.11 | 7.08 | 12.06 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,307,180K ÷ $191,149K
= 6.84
The payables turnover ratio for OSI Systems Inc has shown fluctuating trends over the past five years. The ratio decreased from 12.06 in 2020 to 6.84 in 2024, indicating a lengthening of the time taken to pay off its accounts payable. This could suggest a potential liquidity issue or changes in payment terms with suppliers.
It is notable that the payables turnover ratio peaked in 2022 at 8.11, reflecting an efficiency improvement in managing accounts payable during that period. However, the subsequent decrease in the ratio in 2023 and 2024 indicates a potential reversal of this positive trend.
Overall, a declining trend in payables turnover could raise concerns about the company's ability to meet its short-term obligations in a timely manner. Further analysis of the company's cash flow management and working capital practices may be warranted to understand the factors driving these fluctuations in the payables turnover ratio.
Peer comparison
Jun 30, 2024