Payables turnover (Payable turns)
How many times a year the company pays off its supplier balances.
It is the inverse view of days payable: slower payment is cheap financing.
How it is computed here
Cost of revenue / accounts payable
Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it. Filed under risk. Neither a high nor a low reading is good on its own, so it is never coloured as one.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- A lower figure means slower payment, which is a cash advantage and can also be a warning. The number cannot distinguish the two.
- A year-end snapshot.
Not meaningful for banks, insurers: the product prints n/m with the reason rather than a number for them.
Questions
How is payables turnover calculated?
Cost of revenue / accounts payable. Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it.
What does payables turnover tell a value investor?
It is the inverse view of days payable: slower payment is cheap financing.
When does payables turnover mislead?
A lower figure means slower payment, which is a cash advantage and can also be a warning. The number cannot distinguish the two. A year-end snapshot.