Advanced Drainage Systems Inc (WMS)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 197,089 | 171,208 | 171,966 | 415,039 | 396,278 |
| Payables | US$ in thousands | 254,401 | 210,111 | 224,986 | 171,098 | 106,710 |
| Payables turnover | 0.77 | 0.81 | 0.76 | 2.43 | 3.71 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $197,089K ÷ $254,401K
= 0.77
The payables turnover ratio of Advanced Drainage Systems Inc has exhibited fluctuations over the past five years. The ratio declined from 3.71 in 2020 to 0.77 in 2024, indicating a significant decrease in the efficiency of the company in managing its accounts payables. This downward trend could suggest that the company is taking longer to pay its suppliers.
It is important to note that a low payables turnover ratio may indicate potential liquidity issues or inefficiencies in managing payables, which could negatively impact the company's relationships with suppliers. This declining trend should be closely monitored to assess the company's ability to effectively manage its working capital and vendor relationships.