Bio-Techne Corp (TECH)

Payables turnover

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 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
Cost of revenue (ttm) US$ in thousands 429,363 412,434 408,991 401,857 387,160 382,560 376,362 368,572 366,888 358,143 355,077 352,441 349,103 344,308 330,668 318,436 298,182 277,619 266,958 257,136
Payables US$ in thousands 116,765 31,644 33,120 31,559 37,968 28,895 31,514 28,084 25,679 27,120 24,100 30,475 33,865 30,859 26,756 25,621 29,384 25,842 24,252 27,190
Payables turnover 3.68 13.03 12.35 12.73 10.20 13.24 11.94 13.12 14.29 13.21 14.73 11.56 10.31 11.16 12.36 12.43 10.15 10.74 11.01 9.46

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $429,363K ÷ $116,765K
= 3.68

The payables turnover ratio for Bio-Techne Corp demonstrates variations over the observed periods, indicating changes in how frequently the company settles its accounts payable within a year. Starting from a ratio of 9.46 as of September 30, 2020, the ratio exhibited an increasing trend, reaching peaks of approximately 14.73 in December 2022 and 14.29 in June 2023. These rises suggest that the company was paying its suppliers more frequently during this period, which could imply improved liquidity management or more aggressive settlement practices.

Between September 2020 and mid-2023, the ratio generally trended upward, reflecting more rapid turnover of accounts payable. The increase from earlier low levels to over 14 indicates a potential shift toward faster payments or possibly an increase in procurement activity with shorter payment cycles. Following the June 2023 high, the ratio shows a decline to 13.12 by September 2023 and further to 11.94 by December 2023, signaling a possible slowing in payment frequency or a change in payment strategies.

In 2024, the ratio fluctuates around the mid-12 level, with minor variations: 12.35 in December 2024, 13.03 in March 2025, and a notably lower 3.68 in June 2025. The significant drop in June 2025 may reflect a considerable change in payment practices, such as delayed payments or accounting adjustments.

Overall, the trend indicates periods of increasing payables turnover, punctuated by short-term fluctuations. Higher ratios generally point toward quicker payments to suppliers, which could be associated with better liquidity or strategic supplier payment policies. Conversely, the recent decline and the abrupt decrease in June 2025 warrant further investigation to understand underlying causes, such as liquidity issues, supply chain disruptions, or accounting changes.