Qorvo Inc (QRVO)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	2,281,010	2,272,460	2,359,550	2,131,740	1,917,380
Payables	US$ in thousands	252,993	210,701	327,915	313,868	246,954
Payables turnover		9.02	10.79	7.20	6.79	7.76

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,281,010K ÷ $252,993K
= 9.02

The payables turnover ratio measures how efficiently a company manages its accounts payables by determining how many times during a period a company pays off its suppliers. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently.

Based on the data provided for Qorvo Inc:

- The payables turnover ratio has fluctuated over the past five years, ranging from a low of 6.79 in March 2021 to a high of 10.79 in March 2023.
- In the most recent period ending March 31, 2024, Qorvo Inc's payables turnover ratio decreased to 9.02 compared to the previous year.
- While the current ratio of 9.02 suggests that Qorvo Inc paid off its suppliers approximately 9 times during the year, it is important to note that this ratio is lower than the peak ratio observed in March 2023.
- The decrease in the payables turnover ratio could indicate potential changes in the company's payment terms, cash flow management, or supplier relationships.

Overall, a payables turnover ratio of 9.02 for Qorvo Inc suggests a relatively efficient management of accounts payables, but the trend of the ratio should be monitored for any potential impacts on the company's operations and financial performance.