Advanced Drainage Systems Inc (WMS)
Payables turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,810,000 | 1,728,520 | 1,952,710 | 1,968,930 | 1,292,700 |
| Payables | US$ in thousands | 218,024 | 254,401 | 210,111 | 224,986 | 171,098 |
| Payables turnover | 8.30 | 6.79 | 9.29 | 8.75 | 7.56 |
March 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,810,000K ÷ $218,024K
= 8.30
The payables turnover ratio for Advanced Drainage Systems Inc has shown a fluctuating trend over the past five years. In March 31, 2021, the ratio was 7.56 times, indicating that the company paid its suppliers approximately 7.56 times during that year.
There was a noticeable improvement in the payables turnover ratio for the subsequent years, with figures of 8.75 in March 31, 2022, and 9.29 in March 31, 2023. This suggests that the company was managing its accounts payable more efficiently during these periods.
However, in March 31, 2024, the payables turnover ratio decreased to 6.79, indicating a slowdown in the rate at which the company paid its suppliers. This dip in the ratio could potentially be a sign of delayed payments or a change in the company's payment terms.
The ratio then rebounded to 8.30 in March 31, 2025, showing an improvement compared to the previous year but still slightly below the levels seen in 2022 and 2023.
Overall, the payables turnover ratio for Advanced Drainage Systems Inc has demonstrated variability, suggesting fluctuations in the company's management of accounts payable and its relationships with suppliers over the five-year period.