Semtech Corporation (SMTC)

Payables turnover

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Cost of revenue (ttm)	US$ in thousands	1,335,735	1,116,711	1,058,103	683,850	601,497	455,098	467,473	457,718	447,245	446,108	430,656	413,493	400,645	402,013	389,631	391,992	392,580	358,966	379,693	384,744
Payables	US$ in thousands	45,051	55,008	52,473	74,407	100,676	45,072	53,759	—	50,695	46,426	—	—	50,189	47,338	39,319	43,337	48,009	33,724	38,903	40,713
Payables turnover		29.65	20.30	20.16	9.19	5.97	10.10	8.70	—	8.82	9.61	—	—	7.98	8.49	9.91	9.05	8.18	10.64	9.76	9.45

January 28, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,335,735K ÷ $45,051K
= 29.65

The payables turnover ratio for Semtech Corporation has fluctuated over the periods provided, ranging from 5.97 to 29.65. The payables turnover ratio measures how efficiently the company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more frequently, which can be a positive sign as it shows strong liquidity and good relationships with suppliers.

From the data, it is observed that the payables turnover ratio has shown significant variability over time, with some periods showing higher turnover than others. For instance, the ratio in Jan 28, 2024, was notably higher at 29.65 compared to the ratio in Apr 30, 2023, which was 9.19. This variation may be due to seasonal factors, changes in payment terms, or shifts in the company's purchasing patterns.

Overall, analyzing the trend of payables turnover over time can provide insights into Semtech Corporation's payment practices and its ability to manage its working capital effectively. Further investigation into the reasons behind the fluctuations in the payables turnover ratio could help in understanding the company's financial performance and operational efficiency.