Sanmina Corporation (SANM)

Payables turnover

		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	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	7,947,850	8,388,700	8,496,360	8,330,010	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	7,641,920	7,646,670	7,462,300
Payables	US$ in thousands	1,422,230	1,612,830	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	1,336,910	1,350,120	1,439,400
Payables turnover		5.59	5.20	4.93	4.56	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	5.72	5.66	5.18

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $7,947,850K ÷ $1,422,230K
= 5.59

The payables turnover ratio of Sanmina Corporation has shown fluctuations over the past few quarters, indicating changes in the company's efficiency in managing its accounts payable.

The payables turnover ratio measures how efficiently a company is paying its suppliers. A higher ratio generally indicates that the company is paying its suppliers more quickly, which could be a positive sign as it reflects good cash management and possibly strong supplier relationships.

Looking at the trend in the payables turnover ratio for Sanmina Corporation, we see that it has generally been increasing over the past few quarters. The ratio has shown an upward trend from 2.63 in March 2022 to 5.59 in December 2023. This increase may suggest that the company has been paying its suppliers more efficiently over this period.

It is worth noting that the ratio experienced a dip in the first quarter of 2020 (March 2020), likely due to the economic conditions brought about by the global pandemic. However, the ratio quickly recovered and has been steadily increasing since then.

Overall, the increasing trend in the payables turnover ratio for Sanmina Corporation indicates that the company has been managing its accounts payable more effectively in recent quarters, which can have positive implications for its working capital management and overall financial health.