Vista Outdoor Inc (VSTO)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,700,570 | 2,598,350 | 2,395,910 | 1,949,870 | 1,893,880 |
| Payables | US$ in thousands | 163,411 | 136,556 | 146,697 | 163,839 | 89,996 |
| Payables turnover | 16.53 | 19.03 | 16.33 | 11.90 | 21.04 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,700,570K ÷ $163,411K
= 16.53
The payables turnover ratio measures how efficiently a company is managing its accounts payable. It indicates how many times during a period a company pays off its accounts payable on average.
Based on the data provided:
- The payables turnover for Vista Outdoor Inc has fluctuated over the five-year period, ranging from a low of 11.90 in 2021 to a high of 21.04 in 2020.
- A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which may signify strong liquidity or good negotiation power.
- Conversely, a lower payables turnover ratio suggests that the company is taking longer to pay off its suppliers, possibly due to stretched cash flow or less favorable payment terms.
- In 2023 and 2020, Vista Outdoor Inc had relatively high payables turnover ratios, indicating efficient management of accounts payable during those years.
- Overall, the company's payables turnover has been relatively healthy, averaging around 16.55 over the five-year period.
It is essential for the management of Vista Outdoor Inc to regularly monitor the payables turnover ratio to ensure effective management of its accounts payable and maintain good relationships with suppliers.
Peer comparison
Mar 31, 2024