ESCO Technologies Inc (ESE)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 580,377 | 525,457 | 445,045 | 458,311 | 437,998 |
| Payables | US$ in thousands | 86,973 | 78,746 | 56,669 | 50,525 | 63,800 |
| Payables turnover | 6.67 | 6.67 | 7.85 | 9.07 | 6.87 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $580,377K ÷ $86,973K
= 6.67
The payables turnover ratio measures how efficiently a company manages its trade payables. Esco Technologies, Inc.'s payables turnover ratio has been relatively stable over the past five years, with a slight decline from 9.05 in 2020 to 6.67 in 2023. This indicates that the company is taking longer to pay its suppliers, which may suggest either a change in payment terms or a potential slowdown in the management of its trade payables. It is important to delve deeper into the company's financial statements and overall financial health to understand the factors influencing this trend and its potential impact on the company's operations and liquidity.
Peer comparison
Sep 30, 2023