Patterson Companies Inc (PDCO)
Payables turnover
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,188,030 | 5,098,530 | 5,210,320 | 4,708,940 | 4,292,600 |
| Payables | US$ in thousands | 745,375 | 724,993 | 681,321 | 609,264 | 862,093 |
| Payables turnover | 6.96 | 7.03 | 7.65 | 7.73 | 4.98 |
April 27, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,188,030K ÷ $745,375K
= 6.96
To analyze Patterson Companies Inc's payables turnover, we observe a downward trend over the past five years. The payables turnover ratio, which measures how efficiently a company is managing its payables by comparing purchases to average accounts payable, has decreased from 7.73 in 2021 to 6.96 in 2024.
A higher payables turnover ratio indicates that the company is paying off its suppliers quicker, which may suggest good liquidity management. Conversely, a lower ratio could signal potential inefficiencies in managing payables or possibly strained relationships with suppliers.
The decline in Patterson Companies Inc's payables turnover ratio may imply that the company is taking longer to pay its suppliers or experiencing challenges in managing its accounts payable effectively. Further analysis would be needed to understand the underlying reasons for this trend and its impact on the company's overall financial health.
Peer comparison
Apr 27, 2024