ScanSource Inc (SCSC)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,170,550 | 3,652,790 | 3,408,740 | 3,090,290 | 3,108,100 |
| Payables | US$ in thousands | 587,984 | 691,119 | 714,177 | 634,805 | 454,240 |
| Payables turnover | 5.39 | 5.29 | 4.77 | 4.87 | 6.84 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,170,550K ÷ $587,984K
= 5.39
Payables turnover is a financial ratio that measures how efficiently a company manages its trade payables. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which can be a positive indicator.
Based on the data provided for ScanSource Inc over the past five years, we observe fluctuations in the payables turnover ratio. The payables turnover ratio has been consistently above 4, which generally suggests that the company is effectively managing its trade payables.
The trend in the payables turnover ratio shows some variability, with the ratio decreasing from 6.84 in 2020 to 4.77 in 2022, and then increasing to 5.39 in 2024. This fluctuation could be attributed to changes in the company's payment terms with suppliers or fluctuations in purchasing patterns.
Overall, the payables turnover ratio for ScanSource Inc demonstrates a proactive approach to managing trade payables, with the company maintaining a relatively high turnover ratio over the years. It is essential for the company to continue monitoring this ratio to ensure efficient management of its payables in the future.
Peer comparison
Jun 30, 2024