Qualcomm Incorporated (QCOM)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 17,060,000 | 15,869,000 | 18,635,000 | 14,262,000 | 9,255,000 |
| Payables | US$ in thousands | 2,584,000 | 1,912,000 | 3,796,000 | 2,750,000 | 2,248,000 |
| Payables turnover | 6.60 | 8.30 | 4.91 | 5.19 | 4.12 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $17,060,000K ÷ $2,584,000K
= 6.60
The payables turnover of Qualcomm Incorporated has fluctuated over the past five years, with a significant decrease from 8.30 in 2023 to 4.91 in 2022, followed by an increase to 6.60 in 2024. This ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its accounts payable within a specific period.
A higher payables turnover ratio generally reflects a more efficient management of payables, as the company is paying off its suppliers more frequently. In contrast, a lower ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships or result in missed discounts for early payment.
It is essential for Qualcomm to monitor its payables turnover consistently to ensure effective management of its working capital and maintain positive relationships with its suppliers. The recent increase in payables turnover from 2022 to 2024 is a positive sign, indicating improved efficiency in managing its accounts payable.
Peer comparison
Sep 30, 2024