Insteel Industries Inc (IIIN)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 583,790 | 629,522 | 469,053 | 416,831 | 425,652 |
| Payables | US$ in thousands | 34,346 | 46,796 | 49,443 | 38,961 | 21,595 |
| Payables turnover | 17.00 | 13.45 | 9.49 | 10.70 | 19.71 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $583,790K ÷ $34,346K
= 17.00
The payables turnover ratio measures how efficiently a company is managing its accounts payable. A higher ratio indicates that the company is paying its suppliers more quickly.
In the case of Insteel Industries, Inc., the payables turnover has varied over the past five years. As of September 30, 2023, the payables turnover ratio stood at 17.00, reflecting an increase from the previous year. This suggests that Insteel Industries, Inc. was able to pay off its suppliers more frequently during the year, indicating improved efficiency or stronger bargaining power with its suppliers.
Comparing this to previous years, the payables turnover ratio has fluctuated, reaching its lowest point at 9.49 on October 2, 2021, and its highest at 19.71 on September 28, 2019. These fluctuations may indicate changes in the company's payment policies, supplier relationships, or overall financial position.
Overall, the trend in Insteel Industries, Inc.'s payables turnover ratio suggests that the company has been actively managing its accounts payable, and the recent increase indicates a potential for improved liquidity and supplier relationships. However, further analysis of the company's financial performance and cash flow management would be necessary to fully assess the reasons behind these fluctuations.
Peer comparison
Sep 30, 2023