Vestis Corporation (VSTS)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,561,546 | 2,418,082 | 2,259,927 | 2,115,965 | 1,970,215 | 1,991,607 | 1,983,285 | |||
| Payables | US$ in thousands | 163,054 | 150,542 | 146,528 | 130,001 | — | — | — | — | — | — |
| Payables turnover | 15.71 | 16.06 | 15.42 | 16.28 | — | — | — |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,561,546K ÷ $163,054K
= 15.71
To analyze Vestis Corporation's payables turnover, we first need to understand that this ratio measures how efficiently the company is managing its accounts payable. It indicates how many times during a period the company pays off its accounts payable. A higher payables turnover ratio generally indicates that the company is managing its payables effectively.
Looking at the data provided, we see that the payables turnover ratio has fluctuated over the past few quarters. In the most recent period, the payables turnover was 15.71, slightly lower than the previous quarter's ratio of 16.06. This may indicate that Vestis Corporation took slightly longer to pay off its suppliers in the current period compared to the previous quarter.
Comparing this ratio to industry benchmarks or historical data from the company can provide more insights into the efficiency of Vestis Corporation's payables management. Additionally, further analysis should be conducted to understand the reasons behind the changes in the payables turnover ratio and whether they are in line with the company's overall financial strategy and operational performance.
Peer comparison
Sep 30, 2024