Synopsys Inc (SNPS)

Payables turnover

		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	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Cost of revenue (ttm)	US$ in thousands	1,267,014	1,222,193	1,172,571	1,136,270	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	752,946	760,785	759,534
Payables	US$ in thousands	76,808	155,891	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	19,815	14,846	31,219
Payables turnover		16.50	7.84	17.62	13.46	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	38.00	51.25	24.33

January 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,267,014K ÷ $76,808K
= 16.50

The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the cost of goods sold to the average accounts payable balance during a period. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.

Synopsys, Inc.'s payables turnover ratio fluctuated over the past eight quarters, ranging from 7.84 to 28.30. In Q4 2022, the company had a high payables turnover of 28.30, indicating that it was paying off its suppliers very quickly. This could indicate strong cash flow management or favorable payment terms with suppliers.

However, in the following quarters, the payables turnover decreased, with the ratio falling below 10 in Q4 2023 before slightly improving in Q1 2024 to 16.50. A decreasing payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships or signal cash flow issues.

Overall, the trend in Synopsys, Inc.'s payables turnover suggests some volatility in the management of its accounts payable. Further analysis of the company's financial statements and operating activities would be necessary to understand the factors driving these fluctuations and their potential implications for the company's financial health and supplier relationships.