Hillenbrand Inc (HI)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,126,300 | 1,877,800 | 1,551,500 | 1,509,100 | 1,703,700 |
| Payables | US$ in thousands | 444,800 | 451,500 | 371,000 | 361,300 | 271,600 |
| Payables turnover | 4.78 | 4.16 | 4.18 | 4.18 | 6.27 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,126,300K ÷ $444,800K
= 4.78
Hillenbrand Inc's payables turnover ratio over the past five years has shown a varying trend. The payables turnover ratio measures how efficiently a company is managing its accounts payable by indicating how many times a company pays off its suppliers during a specific period.
In 2020, the payables turnover ratio was relatively high at 6.27, indicating that Hillenbrand was paying off its suppliers more frequently throughout the year compared to the following years. This could be perceived as a positive sign as it suggests effective management of payables and strong supplier relations.
However, from 2021 onwards, the payables turnover ratio decreased to a range between 4.16 and 4.18, suggesting a slowdown in the rate at which Hillenbrand was settling its payables in comparison to 2020. This could indicate a shift in payment terms with suppliers, a change in procurement strategies, or potentially some inefficiencies in managing payables during these years.
Overall, the downward trend in the payables turnover ratio from 2020 to 2023 may warrant further investigation to understand the underlying factors influencing this change and assess the potential impact on the company's working capital management and supplier relationships. Additional context and information about Hillenbrand's financial and operational strategies would be necessary to provide a more comprehensive analysis of the company's payables turnover performance.
Peer comparison
Sep 30, 2024