Greenbrier Companies Inc (GBX)
Payables turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,502,900 | 2,671,700 | 1,516,300 | 2,439,100 | 2,667,100 |
| Payables | US$ in thousands | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
August 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,502,900K ÷ $—K
= —
The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the cost of goods sold to the average accounts payable balance. A higher payables turnover indicates that the company is paying its suppliers more frequently, which can be a sign of strong liquidity and effective management of working capital.
In the case of Greenbrier Cos., Inc., the payables turnover ratio has fluctuated over the past five years. In 2023, the payables turnover ratio stood at 8.83, representing an improvement from the previous year. This suggests that Greenbrier Cos., Inc. paid off its suppliers more frequently compared to the previous year, which could indicate efficient management of its accounts payable and strong working capital management.
However, it is essential to consider the industry benchmark and compare the company's payables turnover ratio with its peers to gain a more comprehensive understanding of its performance in managing its accounts payable. Additionally, analyzing the trend of payables turnover over several years can provide valuable insights into the company's payment practices and financial health.
Peer comparison
Aug 31, 2023