Advanced Drainage Systems Inc (WMS)
Payables turnover
| 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 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,810,004 | 1,834,267 | 1,787,841 | 1,776,715 | 1,728,524 | 1,721,785 | 1,750,517 | 1,837,220 | 1,952,713 | 2,045,533 | 2,120,663 | 2,062,831 | 1,968,931 | 1,797,565 | 1,608,825 | 1,440,741 | 1,292,698 | 1,238,119 | 1,190,545 | 1,201,596 |
| Payables | US$ in thousands | 218,024 | 183,913 | 273,293 | 264,828 | 254,401 | 207,902 | 223,536 | 205,591 | 210,111 | 174,106 | 236,603 | 274,606 | 224,986 | 195,471 | 257,576 | 229,300 | 171,098 | 108,368 | 114,030 | 96,654 |
| Payables turnover | 8.30 | 9.97 | 6.54 | 6.71 | 6.79 | 8.28 | 7.83 | 8.94 | 9.29 | 11.75 | 8.96 | 7.51 | 8.75 | 9.20 | 6.25 | 6.28 | 7.56 | 11.43 | 10.44 | 12.43 |
March 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,810,004K ÷ $218,024K
= 8.30
The payables turnover ratio measures how efficiently a company pays its suppliers for goods and services purchased on credit. A higher payables turnover ratio indicates that the company is managing its payables effectively by settling its obligations quickly.
Analyzing the payables turnover data for Advanced Drainage Systems Inc over the past few years, we observe fluctuations in the ratio. The payables turnover ratio has ranged from a peak of 12.43 on June 30, 2020, to a low of 6.25 on September 30, 2021. This indicates varying degrees of efficiency in managing payables during the period under review.
The company showed a trend of decreasing payables turnover from June 2021 to September 2022, which could suggest a longer payment cycle or potential liquidity constraints. However, there was an improvement in payables turnover from March 2023 onwards, with the ratio generally increasing.
Overall, the payables turnover ratio of Advanced Drainage Systems Inc has shown some volatility but has been relatively stable in recent periods, ranging between 6.71 and 11.75. Further analysis would be required to understand the factors contributing to these fluctuations and their implications for the company's financial management and operations.