Hillenbrand Inc (HI)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,877,800 | 1,551,500 | 1,509,100 | 1,703,700 | 1,184,300 |
| Payables | US$ in thousands | 451,500 | 371,000 | 361,300 | 271,600 | 228,500 |
| Payables turnover | 4.16 | 4.18 | 4.18 | 6.27 | 5.18 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,877,800K ÷ $451,500K
= 4.16
The payables turnover of Hillenbrand Inc has shown a declining trend over the last five years. The ratio decreased from 6.27 in 2019 to 4.16 in 2023. This indicates that the company is taking longer to pay its suppliers, which could lead to strained relationships or potentially higher costs in the future. It is important for the company to assess its payables management and consider the impact on its liquidity and supplier relationships. Further analysis of the company's payables management practices and its impact on working capital should be conducted to understand the underlying reasons for this trend.
Peer comparison
Sep 30, 2023