Plexus Corp (PLXS)

Payables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	4,021,390	3,639,640	3,198,890	3,244,450	3,022,380
Payables	US$ in thousands	646,610	805,583	634,969	516,297	444,944
Payables turnover		6.22	4.52	5.04	6.28	6.79

September 30, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $4,021,390K ÷ $646,610K
= 6.22

The payables turnover ratio measures how efficiently a company manages its accounts payable by calculating how many times a company pays off its suppliers during a specific period. A higher payables turnover ratio indicates that the company is efficiently managing its payables.

Based on the data provided, Plexus Corp.'s payables turnover ratio has fluctuated over the past five years. In the latest period ending September 30, 2023, the payables turnover ratio was 5.90, which increased from the previous year. This improvement suggests that Plexus Corp. has been more effective in managing its accounts payable by paying off its suppliers more frequently.

It is essential to take into consideration industry benchmarks and compare the company's payables turnover ratio with its peers to gain a better understanding of its performance in managing its payables. Additionally, further analysis of the company's financial statements and business operations would provide a more comprehensive assessment of its payables management efficiency.