Seagate Technology PLC (STX)
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 | 5,411,000 | 5,441,000 | 5,779,000 | 6,356,000 | 6,635,000 | 7,261,000 | 7,714,000 | 8,171,000 | 8,773,000 | 9,035,000 | 9,015,000 | 8,760,000 | 8,303,000 | 8,017,000 | 7,991,000 | 8,000,000 | 8,210,000 | 8,010,000 | 7,772,000 | 7,780,000 |
| Payables | US$ in thousands | 1,786,000 | 1,672,000 | 1,619,000 | 1,511,000 | 1,603,000 | 1,697,000 | 1,085,000 | 1,712,000 | 2,058,000 | 1,948,000 | 1,812,000 | 1,766,000 | 1,725,000 | 1,861,000 | 1,730,000 | 1,795,000 | 1,808,000 | 1,830,000 | 1,870,000 | 1,750,000 |
| Payables turnover | 3.03 | 3.25 | 3.57 | 4.21 | 4.14 | 4.28 | 7.11 | 4.77 | 4.26 | 4.64 | 4.98 | 4.96 | 4.81 | 4.31 | 4.62 | 4.46 | 4.54 | 4.38 | 4.16 | 4.45 |
June 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,411,000K ÷ $1,786,000K
= 3.03
The payables turnover ratio measures how efficiently a company is managing its accounts payable by indicating how many times during a period, on average, the company pays off its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be beneficial for maintaining good relationships with suppliers and potentially negotiating better terms.
Looking at the payables turnover ratio of Seagate Technology PLC over the past few quarters, we can observe some fluctuations. The ratio has ranged from a low of 3.03 to a high of 7.11, with an average around 4.5 times per year.
In general, a payables turnover ratio that is consistent or increasing over time is a positive sign, as it indicates that the company is efficiently managing its accounts payable. However, a significant decrease in the ratio could suggest that the company is taking longer to pay its suppliers, which may strain supplier relationships or indicate potential cash flow issues.
For Seagate Technology PLC, the payables turnover ratio has displayed some variability, but overall, it has maintained at a relatively healthy level. Further analysis would be needed to determine the specific reasons behind the fluctuations and whether they are indicative of any underlying issues or simply reflect normal business operations.
Peer comparison
Jun 30, 2024