Greif Bros Corporation (GEF)
Payables turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,726,000 | 4,755,600 | 4,884,600 | 5,133,500 | 5,471,500 | 5,796,000 | 5,904,000 | 5,801,900 | 5,555,700 | 5,137,000 | 3,648,200 | 3,366,600 | 3,197,700 | 3,173,900 | 3,175,900 | 3,280,900 | 3,354,900 | 3,138,100 | 3,129,000 | 2,888,100 |
| Payables | US$ in thousands | 468,000 | 497,800 | 505,800 | 502,400 | 464,000 | 561,300 | 642,100 | 619,800 | 619,600 | 704,500 | 657,000 | 579,600 | 468,000 | 450,700 | 436,000 | 418,300 | 389,800 | 435,200 | 458,500 | 473,800 |
| Payables turnover | 10.10 | 9.55 | 9.66 | 10.22 | 11.79 | 10.33 | 9.19 | 9.36 | 8.97 | 7.29 | 5.55 | 5.81 | 6.83 | 7.04 | 7.28 | 7.84 | 8.61 | 7.21 | 6.82 | 6.10 |
January 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,726,000K ÷ $468,000K
= 10.10
To analyze Greif Inc's payables turnover, we can see that the ratio has been relatively stable over the past eight quarters, ranging from a low of 8.04 to a high of 10.36.
A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could suggest strong liquidity or efficient working capital management. On the other hand, a lower ratio may imply that the company is taking longer to pay its suppliers, potentially signaling financial distress or inefficient operations.
In Greif Inc's case, the payables turnover ratio has generally been above 8, which indicates that the company is managing its accounts payable effectively and maintaining a healthy relationship with its suppliers. However, the slight fluctuations in the ratio over the quarters may require further investigation to understand the reasons behind the changes.
Overall, the consistent performance of Greif Inc in terms of payables turnover reflects a solid financial position and efficient working capital management.