DR Horton Inc (DHI)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 26,110,000 | 22,975,900 | 19,899,200 | 15,373,200 | 13,720,900 |
| Payables | US$ in thousands | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $26,110,000K ÷ $—K
= —
The payables turnover ratio measures how efficiently a company manages its trade credit with suppliers. A higher ratio indicates faster payment to suppliers, which may be beneficial for building strong relationships and negotiating favorable terms. D.R. Horton Inc.'s payables turnover has shown some fluctuation over the past five years, ranging from 16.89 to 21.64 times. The 2023 figure of 20.95 suggests an improvement in the company's ability to settle its obligations to suppliers in a timely manner compared to the previous year. This may imply effective working capital management and a positive impact on liquidity. However, it's important to consider industry norms and the company's specific business model when assessing the significance of this trend.
Peer comparison
Sep 30, 2023