Synopsys Inc (SNPS)

Payables turnover

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020
Cost of revenue (ttm)	US$ in thousands	1,295,271	1,252,591	1,222,347	1,170,191	1,125,370	1,075,748	1,086,497	1,091,067	1,063,697	1,015,702	949,587	910,762	861,777	851,600	839,542	809,821	794,690	752,884	746,508	752,922
Payables	US$ in thousands	207,333	78,547	92,299	76,808	154,608	66,550	84,397	70,245	37,580	71,998	74,471	29,203	27,413	41,305	44,131	25,378	30,003	37,126	51,756	26,579
Payables turnover		6.25	15.95	13.24	15.24	7.28	16.16	12.87	15.53	28.30	14.11	12.75	31.19	31.44	20.62	19.02	31.91	26.49	20.28	14.42	28.33

October 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,295,271K ÷ $207,333K
= 6.25

The payables turnover ratio for Synopsys Inc has shown fluctuations over the past several quarters. The ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers.

The payables turnover ratio was relatively consistent in the range of 12 to 16 times over the period from January 2020 to January 2023. It then significantly increased to around 30 times by October 2023, showing an improvement in the company's ability to pay off its suppliers. This high ratio was sustained for a few quarters before dropping slightly in the following periods.

The ratio saw another peak of 31.91 times by January 2021, indicating exceptionally efficient management of payables. Subsequently, there was a slight decline in the ratio before it rose again to 28.33 times by July 2021. The ratio then fluctuated in the range of 14 to 20 times over the next few quarters.

Overall, the payables turnover ratio for Synopsys Inc has displayed varying levels of efficiency in managing its accounts payable, with periods of both improvement and slight declines. This measure is key in assessing the company's liquidity and its ability to honor its financial obligations to suppliers.