Seagate Technology PLC (STX)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,897,000 | 5,015,000 | 6,033,000 | 8,192,000 | 7,764,000 |
| Payables | US$ in thousands | 1,604,000 | 1,786,000 | 1,603,000 | 2,058,000 | 1,725,000 |
| Payables turnover | 3.68 | 2.81 | 3.76 | 3.98 | 4.50 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,897,000K ÷ $1,604,000K
= 3.68
The payables turnover ratio for Seagate Technology PLC has shown a declining trend over the specified period. As of June 30, 2021, the ratio stood at 4.50, indicating that the company was able to settle its accounts payable approximately 4.5 times within the fiscal year. By June 30, 2022, this ratio decreased to 3.98, reflecting a slight slowdown in the frequency of paying suppliers. The downward movement continued into June 30, 2023, with the ratio reaching 3.76, and further declined to 2.81 by June 30, 2024. The absence of data for June 30, 2025, precludes assessing any subsequent trend beyond that point.
This consistent decline suggests that Seagate has been progressively taking longer to settle its trade payables over the years. A decreasing payables turnover ratio implies an elongation in the company's payment cycles, which could be indicative of a strategic shift towards extended payment terms, potential liquidity constraints, or a combination of other operational factors. This trend warrants further analysis to determine whether it reflects favorable negotiations with suppliers, a change in credit policies, or possible pressure on cash flows.
Peer comparison
Jun 30, 2025