Edgewell Personal Care Co (EPC)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,298,000 | 1,310,800 | 1,291,200 | 1,136,100 | 1,068,800 |
| Payables | US$ in thousands | 219,300 | 194,400 | 228,800 | 209,500 | 181,900 |
| Payables turnover | 5.92 | 6.74 | 5.64 | 5.42 | 5.88 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,298,000K ÷ $219,300K
= 5.92
The payables turnover ratio for Edgewell Personal Care Co has fluctuated over the past five years. It decreased from 5.88 in 2020 to 5.42 in 2021, before increasing to 5.64 in 2022 and further to 6.74 in 2023. However, in the most recent period ending on September 30, 2024, the payables turnover ratio decreased to 5.92.
The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating the number of times a company pays off its average accounts payable balance within a specific period. A higher payables turnover ratio usually indicates that the company is paying its suppliers more frequently, which may signify good liquidity or strong bargaining power with suppliers.
The fluctuation in Edgewell's payables turnover ratio may be attributed to changes in the company's payment practices, negotiation terms with suppliers, or changes in the industry environment. It is essential to further investigate the reasons behind the variations in the payables turnover ratio and assess the impact on the company's liquidity management and supplier relationships.
Peer comparison
Sep 30, 2024