OSI Systems Inc (OSIS)

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	1,125,984	1,111,329	1,097,206	1,056,471	1,014,431	961,189	880,352	847,808	847,917	793,422	781,938	759,456	758,809	758,585	750,734	747,754	726,984	688,272	692,280	712,921
Payables	US$ in thousands	281,304	173,078	183,768	191,932	191,149	172,115	163,661	164,422	139,011	127,255	129,336	144,420	125,204	129,812	128,164	140,544	141,263	122,719	90,029	92,605
Payables turnover		4.00	6.42	5.97	5.50	5.31	5.58	5.38	5.16	6.10	6.23	6.05	5.26	6.06	5.84	5.86	5.32	5.15	5.61	7.69	7.70

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,125,984K ÷ $281,304K
= 4.00

The payables turnover ratio for OSI Systems Inc demonstrates fluctuations over the analyzed period from September 30, 2020, through June 30, 2025. Initially, at the end of September 2020, the ratio was high at 7.70, indicating a relatively quick payment cycle to suppliers. This ratio remained relatively stable throughout 2020 and early 2021, with values close to 7.69 and 5.61 in March 2021, followed by a decline to approximately 5.15 by June 2021.

From mid-2021 onward, the payables turnover exhibited a declining trend, reaching a low of 5.16 in September 2023. This decrease suggests a lengthening of the average payables period, implying the company was taking longer to settle its accounts payable, potentially indicating tighter liquidity management or strategic delay in payments.

Between September 2023 and March 2025, the ratio displays some variance, peaking at 6.42 in March 2025, which indicates an improvement in paying suppliers more promptly. Notably, by June 2025, the ratio drops sharply to 4.00, the lowest in the observed period, signaling a significant slowdown in the payables turnover and longer payment cycles.

Overall, within this timeframe, the payables turnover ratio shows a trend towards extended payment periods commencing around mid-2021, with notable fluctuations that may reflect changes in operating strategies, liquidity management, or supply chain considerations. The ratio’s decline towards the end of the period may warrant further analysis into the company's cash flow policies or external factors influencing payment behaviors.