Sonos Inc (SONO)
Payables turnover
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 1,083,948 |
| Payables | US$ in thousands | 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 | 251,941 |
| Payables turnover | 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 | 4.30 |
June 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,279,834K ÷ $179,327K
= 7.14
The payables turnover ratio for Sonos Inc has shown fluctuations over the periods analyzed. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance during a specific period.
The trend in Sonos Inc's payables turnover ratio shows that the company took longer to pay off its accounts payable in some periods compared to others. For instance, in the most recent quarter, the payables turnover ratio was 7.14, which means that the company paid off its accounts payable approximately 7.14 times during the quarter. This indicates a decrease in the frequency of paying off accounts payable compared to the previous quarter where the ratio was 10.67.
A higher payables turnover ratio generally indicates that a company is efficiently managing its accounts payable by paying off its suppliers more frequently. Conversely, a lower ratio can indicate that the company is taking longer to pay its suppliers, potentially impacting relationships and leading to liquidity concerns.
It is important for Sonos Inc to monitor its payables turnover ratio consistently and strive to strike a balance between managing cash flow effectively and maintaining good relationships with suppliers. Fluctuations in the ratio may require further investigation to identify the root causes and take appropriate actions to ensure optimal management of accounts payable.
Peer comparison
Jun 30, 2024