Liveramp Holdings Inc (RAMP)

Payables turnover

Mar 31, 2025 Dec 31, 2024 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
Cost of revenue (ttm) US$ in thousands 215,910 205,703 195,639 185,617 179,489 175,239 173,592 174,684 170,084 166,088 161,358 154,133 147,427 145,508 144,036 143,854 144,004 143,299 144,180 150,743
Payables US$ in thousands 112,271 105,334 91,457 84,769 81,202 88,797 79,344 74,077 86,568 83,938 70,312 66,809 83,197 71,655 44,267 32,231 39,955 44,464 38,102 38,380
Payables turnover 1.92 1.95 2.14 2.19 2.21 1.97 2.19 2.36 1.96 1.98 2.29 2.31 1.77 2.03 3.25 4.46 3.60 3.22 3.78 3.93

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $215,910K ÷ $112,271K
= 1.92

The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its suppliers in a given period. A higher payables turnover ratio generally indicates that a company is paying its suppliers more frequently, which may be a sign of good liquidity and strong supplier relationships. Conversely, a lower payables turnover ratio could suggest inefficiencies in managing payables.

Analyzing Liveramp Holdings Inc's payables turnover based on the provided data, we observe fluctuations in the ratio over time. The ratio ranged from a high of 4.46 on June 30, 2021, to a low of 1.77 on March 31, 2022. Generally, a decreasing trend in payables turnover may indicate that the company is taking longer to pay its suppliers, which could lead to strained supplier relationships or potential liquidity issues. Conversely, an increasing trend in payables turnover could suggest that the company is improving its payables management efficiency.

It is important for stakeholders to closely monitor the payables turnover ratio alongside other financial metrics to assess the overall financial health and operational efficiency of Liveramp Holdings Inc. Further analysis and comparison with industry benchmarks and historical trends would provide more insights into the company's performance in managing its accounts payable effectively.