Liveramp Holdings Inc (RAMP)

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	499,188	379,989	394,615	405,239	408,820	513,030	492,546	463,041	445,223	443,772	436,184	441,515	437,048	431,329	442,463	453,392	459,620	467,801	454,455	426,111
Payables	US$ in thousands	81,202	88,797	79,344	74,077	86,568	83,938	70,312	66,809	83,197	80,386	52,998	40,962	48,855	44,464	52,917	53,195	57,019	49,232	46,536	29,930
Payables turnover		6.15	4.28	4.97	5.47	4.72	6.11	7.01	6.93	5.35	5.52	8.23	10.78	8.95	9.70	8.36	8.52	8.06	9.50	9.77	14.24

March 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $499,188K ÷ $81,202K
= 6.15

The payables turnover ratio for Liveramp Holdings Inc has fluctuated over the past few quarters, ranging from a low of 4.28 to a high of 14.24. Generally, a higher payables turnover ratio indicates that the company is paying its suppliers more frequently within the year, which could suggest efficient management of trade payables.

Looking at the trend, the payables turnover ratio has shown some volatility with occasional spikes and dips. The ratio was above 8 for most of the quarters, indicating that Liveramp Holdings was managing its payables effectively during those periods. The significant increase observed in the payables turnover ratio in the third quarter of 2021 and the first quarter of 2022 could be indicative of improved efficiency in managing its accounts payable.

However, the payables turnover dropped in the most recent quarter from the peak of 10.78 to 6.15. This decrease might signal a lengthening of the company's payment period to suppliers, which could potentially strain relationships with vendors if not managed carefully.

In conclusion, while Liveramp Holdings Inc has shown variations in its payables turnover ratio, it is important for the company to maintain a balance in managing its trade payables efficiently to ensure positive relationships with suppliers.