Plexus Corp (PLXS)

Payables turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	3,874,154	3,973,387	4,064,124	4,002,436	3,889,159	2,852,980	2,592,421	2,438,552	1,586,028	2,368,512	2,430,060	2,463,035	2,467,009	2,496,173	1,633,864	1,586,613	2,336,487	2,251,411	2,983,924	2,912,622
Payables	US$ in thousands	647,386	646,610	697,112	729,225	753,755	805,583	853,203	767,536	711,248	634,969	579,571	528,363	488,969	516,297	553,254	483,441	515,484	444,944	430,586	476,481
Payables turnover		5.98	6.14	5.83	5.49	5.16	3.54	3.04	3.18	2.23	3.73	4.19	4.66	5.05	4.83	2.95	3.28	4.53	5.06	6.93	6.11

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,874,154K ÷ $647,386K
= 5.98

The payables turnover ratio for Plexus Corp has fluctuated over the past years. It measures the efficiency with which the company manages its accounts payable. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently within a given period.

In the latest available data, the payables turnover ratio at the end of December 2023 was 5.98, showing an increase compared to the previous quarter. This implies that Plexus Corp is paying off its suppliers almost 6 times a year on average, indicating a relatively efficient management of its accounts payable.

The payables turnover ratio has generally been trending upwards since the beginning of 2021, indicating an improvement in the company's ability to pay its suppliers promptly. This trend suggests that Plexus Corp may be managing its payables more effectively, which could potentially strengthen its relationships with suppliers and enhance its overall financial health.

Overall, the increasing trend in the payables turnover ratio for Plexus Corp over the past few years suggests a positive relationship with suppliers and efficient management of working capital.