Sanmina Corporation (SANM)

Payables turnover

		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	Mar 31, 2020	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	7,194,080	7,229,620	7,571,250	8,012,050	8,452,900	8,560,560	8,394,210	6,262,917	5,717,637	5,185,567	4,775,567	6,343,350	6,281,750	6,484,210	6,490,750	6,344,280	6,434,670	6,462,140	6,818,120	7,308,530
Payables	US$ in thousands	1,441,980	1,433,800	1,443,000	1,422,230	1,559,290	1,724,030	1,828,700	2,139,440	2,041,430	1,976,530	1,817,460	1,694,590	1,464,690	1,296,000	1,108,990	1,143,430	1,210,050	1,252,120	1,127,000	1,180,180
Payables turnover		4.99	5.04	5.25	5.63	5.42	4.97	4.59	2.93	2.80	2.62	2.63	3.74	4.29	5.00	5.85	5.55	5.32	5.16	6.05	6.19

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $7,194,080K ÷ $1,441,980K
= 4.99

Sanmina Corporation's payables turnover has shown fluctuations over the periods presented in the table. The payables turnover ratio indicates how efficiently the company is managing its accounts payable. A higher turnover ratio typically suggests that the company is paying its suppliers more quickly.

From December 2019 to September 2020, the payables turnover ratio ranged between 5.16 and 6.19, indicating a relatively stable and efficient payment cycle during this period. However, there was a decrease in efficiency in the subsequent quarters, with the ratio dropping to a low of 2.62 in March 2022.

In the more recent periods, the payables turnover ratio has shown an upward trend, reaching 5.25 in March 2024. This suggests that Sanmina Corporation has improved its management of accounts payable and is paying its suppliers more efficiently.

Overall, a higher payables turnover ratio indicates better management of payables and potential strong supplier relationships. However, it is essential to consider industry standards and company-specific factors when assessing the significance of this ratio.