Plexus Corp (PLXS)

Payables turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	3,799,025	3,773,226	3,845,260	3,922,154	4,021,387	4,112,124	4,050,436	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
Payables	US$ in thousands	606,378	592,644	627,427	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
Payables turnover		6.27	6.37	6.13	6.06	6.22	5.90	5.55	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

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,799,025K ÷ $606,378K
= 6.27

The payables turnover ratio for Plexus Corp has shown fluctuations over the past several quarters. The ratio measures how efficiently the company is managing its payables by indicating how many times the company pays off its suppliers in a given period.

From December 2019 to September 2020, the payables turnover ratio ranged between 2.95 and 5.05, indicating some variability in how quickly the company was paying its suppliers. However, starting from March 2021, there was a notable increase in the ratio, reaching a peak of 6.37 in June 2024. This improvement suggests that Plexus Corp has been more efficient in managing its payables during this period.

Overall, the increasing trend in the payables turnover ratio indicates that Plexus Corp is taking fewer days to pay off its suppliers over time, which can be a positive sign of effective cash management and good relationships with vendors. However, further analysis and comparison with industry benchmarks would provide a more complete understanding of the company's payables management efficiency.