PTC Inc (PTC)

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	1,281,265	1,281,925	1,298,622	1,312,988	1,262,631	1,215,248	1,182,055	1,119,327	1,156,789	882,551	870,966	900,083	855,626	1,108,296	1,050,941	1,005,121	1,007,502	986,197	991,732	999,120
Payables	US$ in thousands	24,198	47,153	19,637	14,384	43,480	18,492	37,693	38,983	40,153	16,462	23,741	32,922	33,381	23,446	22,230	30,015	24,910	29,954	33,728	42,452
Payables turnover		52.95	27.19	66.13	91.28	29.04	65.72	31.36	28.71	28.81	53.61	36.69	27.34	25.63	47.27	47.28	33.49	40.45	32.92	29.40	23.54

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,281,265K ÷ $24,198K
= 52.95

Payables turnover is a financial ratio that indicates how efficiently a company is managing its accounts payable by measuring how many times during a specific period it pays its suppliers. A higher payables turnover is generally favorable as it suggests that the company is paying its suppliers more frequently.

Analyzing PTC Inc's payables turnover over the past several quarters, we observe fluctuations in the ratio. For example, in the most recent quarter ending September 30, 2024, the payables turnover was 52.95, indicating that PTC Inc paid its suppliers approximately 53 times during that quarter. This demonstrates a significant improvement compared to the previous quarter, where the payables turnover was 27.19.

Looking at the historical trend, we can see that PTC Inc's payables turnover has varied over time. There are quarters where the ratio is relatively high, such as the quarters ending March 31, 2024, and June 30, 2023, where the ratios were 66.13 and 65.72, respectively. Conversely, there are quarters with lower payables turnover, like the quarter ending December 31, 2019, with a ratio of 23.54.

Overall, it is essential to examine the reasons behind these fluctuations in payables turnover to assess whether they are driven by changes in the company's payment practices, supplier relationships, or other operational factors. Additionally, comparing PTC Inc's payables turnover with industry benchmarks and peer companies can provide further insights into its performance in managing its accounts payable effectively.