American Woodmark Corporation (AMWD)

The payables turnover ratio for American Woodmark Corporation has demonstrated notable fluctuations over the specified period. As of April 30, 2021, the ratio stood at 15.55, indicating that the company paid its suppliers approximately 15.55 times during the fiscal year. This ratio decreased slightly to 14.64 by April 30, 2022, reflecting a marginal elongation in the payment cycle or a slight slowdown in payment frequency.

A significant increase is observed by April 30, 2023, when the payables turnover rose sharply to 26.73. This suggests that the company accelerated its payments to suppliers, paying off its accounts approximately 26.73 times within the fiscal year—this could be indicative of improved liquidity, negotiated payment terms, or a strategic effort to reduce outstanding payables.

However, the ratio then declined to 22.80 by April 30, 2024, meaning the company was paying its suppliers slightly less frequently than in 2023, but still maintaining a relatively high rate compared to previous years. This reduction could imply a slight loosening of payment terms or changes in cash management strategies.

Most notably, by April 30, 2025, the payables turnover ratio decreased significantly to 9.90. This substantial drop suggests that the company was paying its suppliers much less frequently—potentially indicating extended payment terms, a strategic accumulation of payables, or cash flow considerations that led to lengthening the accounts payable cycle.

In summary, the data indicates that American Woodmark's payables turnover historically fluctuated within a range, with a peak in 2023. The marked decrease in 2025 signals a significant elongation of payment periods, which may warrant further investigation into the company's liquidity management, supplier agreements, or operational strategies during this period.