PTC Inc (PTC)

Payables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	1,281,260	1,262,940	1,156,540	1,141,420	993,788
Payables	US$ in thousands	24,198	43,480	40,153	33,381	24,910
Payables turnover		52.95	29.05	28.80	34.19	39.90

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,281,260K ÷ $24,198K
= 52.95

The payables turnover ratio for PTC Inc has shown fluctuations over the past five years. In 2024, the payables turnover ratio increased significantly to 52.95, marking a notable improvement from the previous year. This could indicate that PTC Inc is paying off its suppliers more frequently within the year, which may suggest stronger cash management practices or better negotiation terms with suppliers.

Comparing to the data from 2023 and 2022, where the payables turnover ratios were 29.05 and 28.80 respectively, it is evident that there was previously a slower rate of paying off the company's suppliers. This could imply that in those years, PTC Inc took longer to settle its payables, which might have had implications for supplier relationships or liquidity management.

Moreover, the payables turnover ratio in 2021 was 34.19, slightly lower compared to the 2020 figure of 39.90. This decrease could indicate a reduction in the frequency of paying off suppliers during 2021, which might have implications for working capital management or supplier credit terms during that period.

Overall, the trend in PTC Inc's payables turnover ratio suggests varying levels of efficiency in managing payables and supplier relationships over the past five years, with notable improvements in 2024. It is essential for the company to continue monitoring and optimizing its payables turnover to ensure effective working capital management and sustain healthy supplier relationships.