ScanSource Inc (SCSC)
Payables turnover
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,170,554 | 3,366,133 | 3,482,276 | 3,596,091 | 3,652,790 | 3,667,782 | 3,629,591 | 3,490,641 | 3,408,735 | 3,303,351 | 3,200,856 | 3,161,940 | 3,090,351 | 2,565,738 | 2,721,060 | 2,895,328 | 3,126,203 | 3,759,078 | 3,763,335 | 3,810,325 |
| Payables | US$ in thousands | 587,984 | 555,733 | 540,642 | 617,594 | 691,119 | 656,688 | 748,662 | 710,919 | 714,177 | 706,359 | 653,190 | 602,229 | 634,805 | 521,552 | 589,292 | 544,856 | 454,240 | 608,417 | 672,906 | 656,150 |
| Payables turnover | 5.39 | 6.06 | 6.44 | 5.82 | 5.29 | 5.59 | 4.85 | 4.91 | 4.77 | 4.68 | 4.90 | 5.25 | 4.87 | 4.92 | 4.62 | 5.31 | 6.88 | 6.18 | 5.59 | 5.81 |
June 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,170,554K ÷ $587,984K
= 5.39
ScanSource Inc's payables turnover has shown some fluctuations over the past several quarters. The payables turnover ratio measures how efficiently a company is managing its accounts payable by analyzing how many times a company pays off its average accounts payable balance in a given period.
The payables turnover ratio has ranged from a low of 4.62 to a high of 6.44 over the past two years. A higher payables turnover ratio generally indicates that the company is efficiently managing its accounts payable by paying off its suppliers more frequently.
It is worth noting that a consistently high payables turnover ratio may indicate that the company is paying its suppliers too quickly, which could potentially strain its cash flow. On the other hand, a low payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could strain relationships with suppliers.
Overall, ScanSource Inc's payables turnover ratio has shown variability, and it would be essential for the company to closely monitor this ratio to ensure it strikes the right balance in managing its accounts payable effectively.
Peer comparison
Jun 30, 2024