Commercial Metals Company (CMC)

Payables turnover

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Cost of revenue	US$ in thousands	7,677,410	7,630,300	6,142,150	5,089,520	5,492,270
Payables	US$ in thousands	364,390	428,055	450,723	266,102	288,005
Payables turnover		21.07	17.83	13.63	19.13	19.07

August 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $7,677,410K ÷ $364,390K
= 21.07

Commercial Metals Co.'s payables turnover ratio has exhibited an increasing trend over the past five years, reaching 19.18 in 2023 from 16.49 in 2022. This indicates that the company is efficient in paying off its suppliers and creditors. A higher turnover ratio suggests that the company is managing its accounts payable effectively, possibly negotiating favorable credit terms or promptly settling its liabilities. This trend may reflect strong working capital management and positive relationships with suppliers, contributing to improved liquidity and potential cost savings. Overall, the increasing payables turnover ratio signals strong financial health and efficiency in managing the company's payables.