Synnex Corporation (SNX)

Payables turnover

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Cost of revenue	US$ in thousands	53,598,600	58,443,600	29,724,600	18,783,300	17,912,700
Payables	US$ in thousands	13,347,300	13,989,000	12,034,900	3,751,240	3,149,440
Payables turnover		4.02	4.18	2.47	5.01	5.69

November 30, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $53,598,600K ÷ $13,347,300K
= 4.02

The payables turnover ratio measures how efficiently a company is managing its trade credit obligations with its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, while a lower ratio suggests a longer payment period.

The data shows that TD Synnex Corp's payables turnover ratio has fluctuated over the past five years, ranging from a low of 2.47 in 2021 to a high of 6.62 in 2019. The declining trend from 2019 to 2021 may indicate a lengthening of the company's payment period to suppliers, which could potentially strain supplier relationships.

However, the increase in the payables turnover ratio in 2022 and 2023 suggests that TD Synnex Corp has improved its efficiency in managing its payables. This may be due to negotiating better payment terms with suppliers or more effective cash management practices.

Overall, while there have been fluctuations in the payables turnover ratio, the recent increase indicates a positive trend in managing trade credit obligations, which could contribute to improved liquidity and working capital management for TD Synnex Corp.