Insteel Industries Inc (IIIN)
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 | 509,967 | 532,062 | 547,066 | 573,088 | 607,512 | 632,066 | 656,139 | 673,922 | 517,536 | 482,866 | 442,519 | 279,518 | 280,128 | 267,431 | 245,151 | 354,377 | 451,069 | 437,778 | 446,679 | 448,664 |
| Payables | US$ in thousands | 37,487 | 34,827 | 25,409 | 23,852 | 34,346 | 38,075 | 36,936 | 30,801 | 46,796 | 77,159 | 58,459 | 35,369 | 49,443 | 60,217 | 44,941 | 31,761 | 38,961 | 47,891 | 38,438 | 31,919 |
| Payables turnover | 13.60 | 15.28 | 21.53 | 24.03 | 17.69 | 16.60 | 17.76 | 21.88 | 11.06 | 6.26 | 7.57 | 7.90 | 5.67 | 4.44 | 5.45 | 11.16 | 11.58 | 9.14 | 11.62 | 14.06 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $509,967K ÷ $37,487K
= 13.60
The payables turnover ratio measures how efficiently Insteel Industries Inc is managing its accounts payable by calculating how many times the company pays off its suppliers in a given period. A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently, which may imply strong liquidity and effective cash management.
Looking at the historical trend of Insteel Industries Inc's payables turnover, we can see fluctuations in the ratio over time. In the latest period, as of September 30, 2024, the payables turnover ratio stands at 13.60, reflecting a decrease from the previous quarter but still indicating a relatively efficient management of accounts payable.
The company's payables turnover has shown variability, with higher ratios in some quarters and lower ratios in others. A peak in the ratio was observed in December 2023 at 24.03, suggesting that the company was paying its suppliers more frequently during that period. Conversely, in March 2021, the ratio was at a low of 4.44, indicating a longer payment cycle.
It is worth noting that a very high payables turnover ratio could indicate aggressive tactics to delay payments to suppliers, potentially straining relationships. Conversely, a very low ratio may suggest inefficiency in managing payables or potential cash flow issues.
Overall, Insteel Industries Inc's payables turnover ratio fluctuates over time, reflecting varying payment practices and liquidity management strategies. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial performance and operational efficiency.
Peer comparison
Sep 30, 2024