Ethan Allen Interiors Inc (ETD)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 242,528 | 253,159 | 311,012 | 333,056 | 292,062 |
| Payables | US$ in thousands | 22,137 | 27,400 | 28,565 | 37,370 | 61,652 |
| Payables turnover | 10.96 | 9.24 | 10.89 | 8.91 | 4.74 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $242,528K ÷ $22,137K
= 10.96
The payables turnover ratio for Ethan Allen Interiors Inc. demonstrates a consistent upward trend over the observed period from June 30, 2021, through June 30, 2025. Specifically, the ratio increased from 4.74 times in 2021 to 8.91 times in 2022. This indicates that the company increasingly paid its suppliers more frequently, reflecting a potentially more efficient management of accounts payable or improved cash flow management.
Between 2022 and 2023, the ratio further rose to 10.89 times, suggesting a continued acceleration in the company's payments to its vendors. This significant increase could imply strengthened liquidity position or strategic efforts to settle obligations more promptly, potentially fostering better supplier relationships or taking advantage of early payment discounts.
In the subsequent year, the ratio experienced a slight decrease to 9.24 times in 2024, though it remained substantially higher than the levels observed in 2021 and 2022. This modest decline could indicate a temporary shift in payment policies, a change in supplier terms, or fluctuations in operational cash flows.
By 2025, the payables turnover ratio again increased to 10.96 times, surpassing all prior years. This rebound and the near doubling of the ratio from 2021 to 2025 suggest a strategic move towards quicker payment cycles, enhancing the company's accounts payable efficiency.
Overall, the trend reflects an increased frequency of payments to suppliers over the four-year span, indicative of more active management of payable obligations or improved cash management practices. The fluctuation within this period, notably the dip in 2024, suggests some operational adjustments or external influences affecting payment timing, but the general trajectory points toward a higher turnover rate and a potentially stronger liquidity profile.
Peer comparison
Jun 30, 2025