Sanmina Corporation (SANM)

Payables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	8,452,910	7,268,270	6,230,200	6,434,660	7,641,920
Payables	US$ in thousands	1,612,830	2,041,430	1,464,690	1,210,050	1,336,910
Payables turnover		5.24	3.56	4.25	5.32	5.72

September 30, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $8,452,910K ÷ $1,612,830K
= 5.24

The payables turnover ratio measures how efficiently a company manages its payable balances by comparing the cost of goods sold to its average accounts payable. A higher turnover ratio indicates that the company is paying its suppliers more frequently.

The payables turnover for Sanmina Corp has fluctuated over the past five years, ranging from 3.57 to 5.72. The company's payables turnover ratio was 5.08 as of September 30, 2023, compared to 3.57 on October 1, 2022, and 4.24 on October 2, 2021.

The increase in the payables turnover ratio from 2021 to 2023 indicates that Sanmina Corp has been managing its accounts payable more efficiently in recent years. This may imply that the company is paying its suppliers more frequently or taking advantage of discounts for early payment, which could be indicative of improved working capital management.

Overall, the trend in Sanmina Corp's payables turnover suggests a positive shift towards more efficient management of its payables, which could potentially lead to improved liquidity and better supplier relationships.