Sonos Inc (SONO)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,267,342 | 1,279,834 | 1,296,408 | 1,333,822 | 1,389,058 | 1,430,736 | 1,405,229 | 1,448,407 | 1,408,629 | 1,403,713 | 1,407,777 | 1,347,169 | 1,332,466 | 1,310,281 | 1,278,570 | 1,193,098 | 1,179,339 | 1,164,807 | 1,120,967 | 1,135,286 |
| Payables | US$ in thousands | 194,590 | 179,327 | 121,497 | 176,365 | 187,981 | 148,898 | 183,648 | 236,037 | 335,758 | 308,032 | 271,005 | 341,343 | 214,996 | 198,495 | 203,585 | 239,760 | 250,328 | 106,519 | 82,111 | 191,364 |
| Payables turnover | 6.51 | 7.14 | 10.67 | 7.56 | 7.39 | 9.61 | 7.65 | 6.14 | 4.20 | 4.56 | 5.19 | 3.95 | 6.20 | 6.60 | 6.28 | 4.98 | 4.71 | 10.94 | 13.65 | 5.93 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,267,342K ÷ $194,590K
= 6.51
Payables turnover reflects the efficiency with which a company pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could be a sign of strong liquidity or good relations with suppliers.
Analyzing the payables turnover trend for Sonos Inc over the past several quarters, we observe fluctuations in the ratio.
The payables turnover has shown some volatility, with peaks around 10.67 in March 2024 and 13.65 in June 2020, indicating that the company was paying its payables more frequently during these periods. This could suggest efficient management of trade credit and supplier relationships during these periods.
However, there are also periods, such as December 2021 and September 2022, where the payables turnover ratio dropped significantly to lower levels like 3.95 and 4.20, respectively. A lower payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could be a concern if it hints at potential cash flow issues or strained relationships with suppliers.
Overall, while the payables turnover for Sonos Inc has shown variability over time, it is crucial to further investigate the underlying reasons behind these fluctuations to assess the company's financial health and supplier management practices.
Peer comparison
Sep 30, 2024