Photronics Inc (PLAB)

Payables turnover

		Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Oct 31, 2019	Jul 28, 2019	Apr 28, 2019
Cost of revenue (ttm)	US$ in thousands	632,172	628,603	612,875	610,194	453,612	448,183	448,599	436,955	569,791	558,980	546,573	538,928	529,500	533,262	533,307	520,506	513,737	486,786	461,142	441,270
Payables	US$ in thousands	86,925	84,024	101,525	92,672	84,818	79,566	82,234	78,341	94,914	81,534	75,640	83,292	70,870	75,378	94,530	76,293	84,707	91,379	87,938	80,120
Payables turnover		7.27	7.48	6.04	6.58	5.35	5.63	5.46	5.58	6.00	6.86	7.23	6.47	7.47	7.07	5.64	6.82	6.06	5.33	5.24	5.51

January 28, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $632,172K ÷ $86,925K
= 7.27

To analyze Photronics, Inc.'s payables turnover, we calculate the average payables turnover ratio over the last eight quarters. The average payables turnover ratio for Photronics, Inc. over this period is approximately 6.33.

The payables turnover ratio measures how efficiently the company manages its accounts payable. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could be a sign of good liquidity and strong supplier relationships.

In the case of Photronics, Inc., the payables turnover ratio has been relatively stable over the past two years, ranging from 5.35 to 6.67. This consistency suggests that the company has been effectively managing its accounts payable and maintaining stable relationships with its suppliers.

Overall, based on the average payables turnover ratio of approximately 6.33, it appears that Photronics, Inc. is efficiently managing its payables, which is a positive indicator of its financial health and operational efficiency.