Griffon Corporation (GFF)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,328,330 | 2,683,620 | 3,089,040 | 2,148,530 | 2,311,410 |
| Payables | US$ in thousands | 119,354 | 116,646 | 194,793 | 260,038 | 172,537 |
| Payables turnover | 19.51 | 23.01 | 15.86 | 8.26 | 13.40 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,328,330K ÷ $119,354K
= 19.51
The payables turnover ratio for Griffon Corporation has fluctuated over the past five years. In 2024, it was 19.51, indicating that the company paid off its accounts payable almost 20 times during the year. This represents a decrease from the prior year's ratio of 23.01. The downward trend suggests that Griffon Corporation may be taking longer to pay its suppliers or reducing the frequency of payments.
Comparing to 2022 and 2023, where the payables turnover ratios were 15.86 and 8.26 respectively, 2024's higher ratio signifies an improvement in managing accounts payable. However, it is still higher than the ratios for 2020 and 2021, which were 13.40 and 8.26, indicating that the company may be working towards optimizing its payments to suppliers.
Overall, a higher payables turnover ratio generally indicates that a company is managing its accounts payable efficiently by paying its suppliers promptly. However, fluctuations in this ratio over the years suggest potential changes in the company's payment policies or relationships with suppliers that may require further investigation.