Wolfspeed Inc (WOLF)

Payables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	977,000	881,900	708,900	554,600	876,800
Payables	US$ in thousands	53,000	44,900	57,800	44,200	106,900
Payables turnover		18.43	19.64	12.26	12.55	8.20

June 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $977,000K ÷ $53,000K
= 18.43

Based on the payables turnover ratios of Wolfspeed Inc over the past five years, there has been a fluctuating trend in the efficiency of managing its accounts payable. The payables turnover ratio measures how quickly a company pays its suppliers.

The company's payables turnover ratio was 18.43 in 2024, a decrease from 19.64 in 2023. This implies that in 2024, Wolfspeed Inc took approximately 18.43 days to pay its accounts payable compared to 19.64 days in the previous year. The decrease in the ratio indicates a slight slowdown in the company's ability to turn over its accounts payable efficiently.

Comparing the ratios to earlier years, it can be observed that there was a significant improvement from 2020 to 2021 (8.20 to 12.55) and a further increase in 2022 (12.26), suggesting enhanced efficiency in managing payables during those years. However, the ratio slightly decreased in 2023 and then more noticeably in 2024, indicating a potential deterioration in payables management efficiency.

Further analysis and comparison with industry benchmarks would provide a clearer understanding of Wolfspeed Inc's payables turnover performance and potential areas for improvement in managing its accounts payable going forward.