American Woodmark Corporation (AMWD)
Payables turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,469,700 | 1,708,680 | 1,630,740 | 1,421,900 | 1,298,850 |
| Payables | US$ in thousands | 64,470 | 63,915 | 111,422 | 91,622 | 61,277 |
| Payables turnover | 22.80 | 26.73 | 14.64 | 15.52 | 21.20 |
April 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,469,700K ÷ $64,470K
= 22.80
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its suppliers within a specific period. A higher payables turnover ratio typically indicates that the company is paying its suppliers more frequently, which may suggest strong liquidity or creditor management.
American Woodmark Corporation's payables turnover has fluctuated over the past five years. In April 2024, the payables turnover ratio was 22.80, which was lower compared to the previous year when it was 26.73. This decrease suggests that the company took longer to pay its suppliers in 2024 compared to 2023. However, the payables turnover ratio in 2024 was significantly higher than in 2022 and 2021, indicating improved efficiency in managing payables compared to those years.
The payables turnover ratio in 2024 was closer to the ratio observed in 2019, which indicates a return to a similar level of efficiency in managing payables as seen in the earlier year. Overall, the trend in payables turnover for American Woodmark Corporation shows fluctuations over the years, with some improvement in efficiency noted in recent years compared to 2022 and 2021.