Commercial Metals Company (CMC)
Payables turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,291,200 | 7,677,410 | 7,630,300 | 6,142,150 | 5,089,520 |
| Payables | US$ in thousands | 350,550 | 364,390 | 428,055 | 450,723 | 266,102 |
| Payables turnover | 20.80 | 21.07 | 17.83 | 13.63 | 19.13 |
August 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,291,200K ÷ $350,550K
= 20.80
The payables turnover ratio for Commercial Metals Company has shown fluctuating trends over the past five years. It increased from 19.13 in 2020 to 21.07 in 2023 before slightly decreasing to 20.80 in 2024. This indicates that the company is paying its suppliers more frequently in recent years, with a higher turnover ratio suggesting a shorter payment period. A higher payables turnover ratio could indicate efficient management of payables by the company. However, the decrease from 2023 to 2024 may suggest a shift in the company's payment practices or changes in supplier relationships. Further analysis is warranted to understand the underlying reasons for these fluctuations and to assess the overall impact on the company's financial performance and liquidity.
Peer comparison
Aug 31, 2024