Simulations Plus Inc (SLP)

Payables turnover

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Cost of revenue (ttm)	US$ in thousands	42,819	26,079	16,075	13,611	11,630	10,929	10,527	10,737	10,822	10,930	10,842	10,923	10,600	10,489	10,684	10,439	10,649	10,266	9,924	9,466
Payables	US$ in thousands	602	658	360	317	144	357	350	238	225	426	414	19	387	298	400	332	351	663	625	585
Payables turnover		71.13	39.63	44.65	42.94	80.76	30.61	30.08	45.11	48.10	25.66	26.19	574.89	27.39	35.20	26.71	31.44	30.34	15.48	15.88	16.18

August 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $42,819K ÷ $602K
= 71.13

Simulations Plus Inc's payables turnover ratio has shown fluctuations over the past few years. The payables turnover ratio measures how efficiently a company pays off its suppliers. A higher ratio indicates that the company is paying its suppliers more frequently.

The payables turnover ratio for Simulations Plus Inc ranged from 15.48 to 80.76 over the past two years. The highest ratio of 80.76 was reported in August 2023, indicating that the company paid off its suppliers almost 81 times during the year. On the other hand, the lowest ratio of 15.48 was recorded in August 2020, suggesting that the company paid its suppliers only about 15 times during that year.

Overall, the payables turnover ratio of Simulations Plus Inc has been relatively high, indicating that the company is effectively managing its payables and paying off its suppliers in a timely manner. However, fluctuations in the ratio over the years could be due to changes in the company's payment terms, operational efficiency, or external factors impacting supplier relationships.