Enerpac Tool Group Corp (EPAC)
Payables turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 303,165 | 305,835 | 285,504 | 276,099 | 362,106 |
| Payables | US$ in thousands | 50,483 | 72,524 | 61,958 | 45,069 | 76,914 |
| Payables turnover | 6.01 | 4.22 | 4.61 | 6.13 | 4.71 |
August 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $303,165K ÷ $50,483K
= 6.01
The payables turnover ratio for Enerpac Tool Group Corp has fluctuated over the past five years, reaching 6.01 in 2023, 4.22 in 2022, 4.61 in 2021, 6.13 in 2020, and 4.71 in 2019. The increase in the payables turnover ratio from 2019 to 2020 indicates that the company took less time to pay its suppliers in 2020 compared to 2019. However, the decrease in the ratio in 2021 and 2022 suggests that the company extended its payment period to suppliers. The increase in 2023 may signify an improvement in the efficiency of managing payables. Overall, a higher payables turnover ratio indicates that the company is paying its suppliers more frequently or is able to negotiate better payment terms, which can be a positive indicator of effective cash management. However, it is essential to consider the industry norms and the company's specific circumstances when interpreting this ratio.
Peer comparison
Aug 31, 2023