Edgewell Personal Care Co (EPC)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,310,800 | 1,291,200 | 1,136,100 | 1,068,800 | 1,174,400 |
| Payables | US$ in thousands | 194,400 | 228,800 | 209,500 | 181,900 | 222,800 |
| Payables turnover | 6.74 | 5.64 | 5.42 | 5.88 | 5.27 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,310,800K ÷ $194,400K
= 6.74
The payables turnover ratio for Edgewell Personal Care Co has shown a consistent upward trend over the past five years. This trend indicates that the company has been able to manage its trade payables more efficiently, as evidenced by an increase in the turnover ratio from 5.27 in 2019 to 6.74 in 2023.
A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which may be indicative of strong liquidity and favorable supplier relationships. This could also signify effective working capital management and potentially lower financing costs associated with trade payables.
Overall, the upward trend in the payables turnover ratio reflects positively on Edgewell Personal Care Co's ability to effectively manage its accounts payable and suggests a sound financial position in terms of its trade payables management.
Peer comparison
Sep 30, 2023