Hayward Holdings Inc (HAYW)

Hayward Holdings Inc's payables turnover ratio measures how efficiently the company manages its accounts payable by calculating how many times the company pays off its suppliers during a specific period. The payables turnover ratio compares the cost of goods sold to the average accounts payable balance for the period.

Looking at the trend for Hayward Holdings Inc's payables turnover ratio over the past three years, we can see that there has been some fluctuation. In 2021, the payables turnover ratio was 8.53, indicating that the company paid its suppliers approximately 8.53 times during the year. This ratio increased significantly in 2022 to 13.27, suggesting that the company improved its efficiency in managing its accounts payable by paying off suppliers more frequently.

However, in 2023, the payables turnover ratio decreased to 7.48, which may indicate a slowdown in the company's payment of suppliers compared to the previous year. A lower payables turnover ratio could imply that the company is taking longer to settle its payables, which may have implications for supplier relationships and cash flow management.

It is essential to consider the reasons behind the changes in the payables turnover ratio and assess how effectively the company is managing its payables. A lower payables turnover ratio could be a sign of inefficiencies in the company's accounts payable process, while a higher ratio may indicate good management of supplier relationships and working capital. Further analysis of the company's financial situation and industry benchmarks would provide a more comprehensive understanding of its payables management.

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Dec 31, 2023