Qorvo Inc (QRVO)

Payables turnover

		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	Sep 30, 2019	Jun 30, 2019
Cost of revenue (ttm)	US$ in thousands	2,281,011	2,239,869	2,029,116	2,034,443	2,272,457	2,350,287	2,440,921	2,455,486	2,359,546	2,307,982	2,299,200	2,234,247	2,131,741	2,039,477	1,983,357	1,897,731	1,917,378	1,879,696	1,872,701	1,920,514
Payables	US$ in thousands	252,993	282,954	275,256	294,171	210,701	225,111	322,247	327,879	327,915	357,879	521,569	352,143	313,868	301,576	242,147	225,905	246,954	239,180	213,936	224,735
Payables turnover		9.02	7.92	7.37	6.92	10.79	10.44	7.57	7.49	7.20	6.45	4.41	6.34	6.79	6.76	8.19	8.40	7.76	7.86	8.75	8.55

March 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,281,011K ÷ $252,993K
= 9.02

The payables turnover ratio measures how efficiently a company is managing its accounts payable by showing how many times a company pays off its suppliers during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can suggest strong liquidity and efficient working capital management.

Analyzing the payables turnover ratio of Qorvo Inc over the past few quarters, we can observe some fluctuations. The ratio has generally been above 6, indicating that Qorvo is effectively managing its accounts payable. Higher ratios in some quarters, such as 10.79 in March 2023 and 9.02 in March 2024, suggest that Qorvo is paying its suppliers relatively quickly, possibly taking advantage of discounts or negotiating favorable payment terms.

However, there have been some quarters with lower ratios, such as 4.41 in September 2021, indicating a less efficient management of payables during that period. It is important to note that payables turnover ratios can vary depending on industry norms, company policies, and economic conditions.

Overall, Qorvo Inc's payables turnover ratio fluctuates but generally remains at a level indicating efficient management of accounts payable. Monitoring this ratio over time can provide insights into the company's liquidity position and working capital management practices.