Energizer Holdings Inc (ENR)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,435,900 | 3,037,100 | 2,480,600 | 2,273,900 | 2,241,700 |
| Payables | US$ in thousands | 370,800 | 329,400 | 454,800 | 378,100 | 299,000 |
| Payables turnover | 6.57 | 9.22 | 5.45 | 6.01 | 7.50 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,435,900K ÷ $370,800K
= 6.57
The payables turnover ratio represents the efficiency with which a company manages its trade payables. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, potentially reflecting a strong cash position or effective management of working capital.
Analyzing the trend in Energizer Holdings Inc's payables turnover ratio over the past five years, it shows a fluctuating pattern. The ratio decreased from 4.99 in 2019 to 4.40 in 2020, suggestive of a potential lengthening in the time taken to pay its trade payables. However, the ratio then increased to 4.09 in 2021 and further to 5.86 in 2022, before decreasing slightly to 4.95 in 2023.
This fluctuation may indicate varying payment terms with suppliers or changes in procurement strategies. While a decreasing trend in the payables turnover ratio suggests a potential risk of strained supplier relations, an increasing trend can point to efficient management of payables.
Further analysis, considering industry benchmarks and the company's specific operational and strategic context, would provide a more comprehensive understanding of the implications of these fluctuations in the payables turnover ratio for Energizer Holdings Inc.
Peer comparison
Sep 30, 2023