Enerpac Tool Group Corp (EPAC)
Payables turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 288,499 | 303,165 | 305,835 | 285,504 | 276,099 |
| Payables | US$ in thousands | 43,368 | 50,483 | 72,524 | 61,958 | 45,069 |
| Payables turnover | 6.65 | 6.01 | 4.22 | 4.61 | 6.13 |
August 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $288,499K ÷ $43,368K
= 6.65
The payables turnover ratio measures how efficiently a company is managing its accounts payable by looking at how many times during a period it pays off its suppliers. A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently.
Analyzing Enerpac Tool Group Corp's payables turnover over the past five years, we can see that there has been some fluctuation in the ratio. In 2020, the payables turnover was 6.13, which decreased to 4.61 in 2021 before increasing again to 4.22 in 2022. Subsequently, there was a significant improvement with the ratio reaching 6.01 in 2023 and further increasing to 6.65 in 2024.
The upward trend in the payables turnover ratio from 2021 to 2024 suggests that Enerpac Tool Group Corp has been managing its accounts payable more efficiently over these years. This could be indicative of better cash flow management, negotiation with suppliers for more favorable payment terms, or improved operational efficiency.
Overall, the increasing trend in the payables turnover ratio indicates that Enerpac Tool Group Corp has been more effective in paying its suppliers promptly in recent years. This could have positive implications for the company's working capital management and overall financial health.
Peer comparison
Aug 31, 2024