Seagate Technology PLC (STX)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,445,000 | 6,635,000 | 8,774,000 | 8,303,000 | 8,193,000 |
| Payables | US$ in thousands | 1,786,000 | 1,603,000 | 2,058,000 | 1,725,000 | 1,808,000 |
| Payables turnover | 3.05 | 4.14 | 4.26 | 4.81 | 4.53 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,445,000K ÷ $1,786,000K
= 3.05
Seagate Technology PLC's payables turnover has shown a declining trend over the past five years, with the ratio decreasing from 4.53 in 2020 to 3.05 in 2024. This indicates that the company took longer to pay its accounts payable in 2024 compared to previous years. A lower payables turnover ratio could suggest that Seagate is taking more time to fulfill its payment obligations to suppliers, which may impact its relationship with vendors and potentially lead to strained cash flow management. Further analysis of the company's liquidity position and vendor relationships is recommended to understand the implications of this trend.
Peer comparison
Jun 30, 2024