Synnex Corporation (SNX)

Payables turnover

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Cost of revenue (ttm)	US$ in thousands	54,471,200	53,056,300	52,321,900	53,469,300	55,688,000	56,739,400	58,064,100	58,443,600	57,923,500	48,377,840	39,591,490	29,724,640	20,808,720	20,923,160	19,591,820	18,783,290	29,227,810	24,788,493	21,168,860	17,912,755
Payables	US$ in thousands	15,084,100	13,873,200	12,134,600	12,372,700	13,347,300	12,485,200	12,997,700	13,989,000	13,719,000	12,521,100	12,193,300	12,034,900	3,222,280	3,503,040	3,116,100	3,751,240	3,655,220	3,405,320	2,589,890	3,149,440
Payables turnover		3.61	3.82	4.31	4.32	4.17	4.54	4.47	4.18	4.22	3.86	3.25	2.47	6.46	5.97	6.29	5.01	8.00	7.28	8.17	5.69

November 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $54,471,200K ÷ $15,084,100K
= 3.61

Synnex Corporation's payables turnover has shown fluctuations over the years based on the provided data. The payables turnover ratio indicates how efficiently a company is managing its trade credit by paying its suppliers.

From November 30, 2019, to August 31, 2021, the payables turnover ratio increased steadily from 5.69 to 6.46, suggesting that Synnex Corporation was managing its payables more efficiently during this period.

However, starting from November 30, 2021, the payables turnover ratio began to decline, reaching its lowest point of 2.47 on November 30, 2021. This decrease could imply that Synnex Corporation was taking longer to pay its suppliers, which could impact relationships with suppliers and potentially lead to liquidity issues.

Subsequently, the payables turnover ratio slightly recovered but remained relatively stable between 3.25 and 4.54 from February 28, 2022, to November 30, 2023. This stability could indicate that Synnex Corporation was making efforts to maintain its payables turnover efficiency.

Overall, it is important to monitor Synnex Corporation's payables turnover ratio closely to ensure that the company is effectively managing its payables and maintaining positive relationships with its suppliers while also optimizing its working capital.