Sonos Inc (SONO)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,267,250 | 1,384,030 | 1,408,630 | 1,335,250 | 1,179,350 |
| Payables | US$ in thousands | 194,590 | 187,981 | 335,758 | 214,996 | 250,328 |
| Payables turnover | 6.51 | 7.36 | 4.20 | 6.21 | 4.71 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,267,250K ÷ $194,590K
= 6.51
Sonos Inc's payables turnover ratio has exhibited fluctuations over the past five years, ranging from 4.20 to 7.36. A higher payables turnover ratio indicates that the company is managing its accounts payable more efficiently, implying that it is taking less time to pay off its suppliers.
In 2023, the payables turnover ratio was at its peak at 7.36, suggesting that Sonos Inc was managing its payables effectively by settling its obligations quickly. However, in 2022 and 2020, the payables turnover ratios were lower at 4.20 and 4.71, respectively, indicating a longer period taken by the company to pay off its suppliers.
Overall, the fluctuations in Sonos Inc's payables turnover ratio suggest varying levels of efficiency in managing its payables over the years. Further analysis of the company's payment policies and supplier relationships may provide insights into the reasons behind these fluctuations.
Peer comparison
Sep 30, 2024