American Woodmark Corporation (AMWD)

Payables turnover

Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Cost of revenue (ttm) US$ in thousands 1,759,686 1,795,038 1,860,200 1,951,314 2,015,317 2,055,022 2,122,001 2,049,814 1,973,795 1,939,783 1,820,870 1,789,040 1,718,916 1,642,761 1,629,739 1,597,485 1,530,474 1,444,479 1,369,966 1,298,846
Payables US$ in thousands 64,470 64,905 59,352 61,579 63,915 58,971 85,622 112,988 111,422 87,986 87,109 87,214 91,622 88,765 78,401 62,824 66,378 62,850 67,167 61,277
Payables turnover 27.29 27.66 31.34 31.69 31.53 34.85 24.78 18.14 17.71 22.05 20.90 20.51 18.76 18.51 20.79 25.43 23.06 22.98 20.40 21.20

April 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,759,686K ÷ $64,470K
= 27.29

The payables turnover ratio for American Woodmark Corporation has exhibited some fluctuations over the past few years. The ratio measures how efficiently the company is managing its accounts payable by calculating the number of times a company pays off its average accounts payable balance during a specific period.

In the most recent period ending April 30, 2024, the payables turnover ratio stood at 27.29, indicating that the company paid off its accounts payable balance approximately 27.29 times during the year. This suggests a relatively high efficiency in managing its payables.

Looking at the trend over the past few years, the payables turnover ratio has generally been on an upward trajectory, with some minor fluctuations. The ratio peaked at 34.85 in January 2023 and has since hovered around the high 20s to low 30s range.

A higher payables turnover ratio typically indicates that the company is paying off its suppliers more quickly, which could be a positive signal of strong financial management and good relationships with suppliers. Conversely, a significantly low ratio could indicate potential liquidity or cash flow issues.

Overall, the trend in American Woodmark Corporation's payables turnover suggests an efficient management of accounts payable, with the company consistently paying off its obligations relatively quickly in recent years.