Synopsys Inc (SNPS)

Payables turnover

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Cost of revenue	US$ in thousands	1,245,290	1,030,840	1,063,700	861,777	794,690
Payables	US$ in thousands	207,333	154,608	37,580	27,413	30,003
Payables turnover		6.01	6.67	28.30	31.44	26.49

October 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,245,290K ÷ $207,333K
= 6.01

The payables turnover ratio for Synopsys Inc has been decreasing over the past five years, indicating a longer period of time taken by the company to pay its suppliers. In particular, there was a significant decrease in payables turnover from 28.30 in October 2022 to 6.01 in October 2024. This trend suggests a potential increase in the company's accounts payable balance relative to the cost of goods sold, which may be attributed to changes in payment terms, supplier relationships, or operational efficiency. Further analysis of Synopsys Inc's financial statements and management's commentary would provide valuable insights into the factors driving this trend in payables turnover.