Griffon Corporation (GFF)

Payables turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	2,313,836	2,330,245	2,338,800	2,634,196	2,624,500	3,176,773	3,264,713	3,098,053	3,086,838	2,274,239	2,210,951	2,123,238	2,144,843	1,825,760	1,801,343	1,749,153	1,699,336	2,239,444	2,195,667	2,172,394
Payables	US$ in thousands	119,354	156,564	143,152	154,018	116,646	152,202	159,198	160,441	194,793	212,038	227,085	243,611	260,038	258,914	257,286	237,900	172,537	218,024	228,674	220,038
Payables turnover		19.39	14.88	16.34	17.10	22.50	20.87	20.51	19.31	15.85	10.73	9.74	8.72	8.25	7.05	7.00	7.35	9.85	10.27	9.60	9.87

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,313,836K ÷ $119,354K
= 19.39

Griffon Corporation's payables turnover ratio has shown fluctuations over the past few periods. It measures how efficiently the company manages its accounts payable by comparing the cost of goods sold to the average accounts payable during a specific period. The higher the ratio, the more effectively the company is managing its payables.

In the latest period ending September 30, 2024, Griffon Corporation's payables turnover was 19.39, indicating that the company converted its accounts payable into purchases almost 19 times during the year. This represents an improvement from the previous quarter but is notably higher than in earlier periods.

The trend in the payables turnover ratio shows an increase from 7.00 in March 2021 to a peak of 22.50 in September 2023, followed by some fluctuations in subsequent periods. While a high ratio is generally positive, indicating efficient management of payables, it is important to consider industry benchmarks and the company's specific circumstances for a comprehensive assessment.

Overall, Griffon Corporation's payables turnover ratio suggests a relatively efficient management of its accounts payable, with the latest period showing a significant improvement.