Insteel Industries Inc (IIIN)
Payables turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 451,256 | 437,329 | 416,026 |
| Payables | US$ in thousands | 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 | 21,595 | 31,311 | 35,124 |
| Payables turnover | 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 | 20.90 | 13.97 | 11.84 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $573,088K ÷ $23,852K
= 24.03
The payables turnover ratio measures how efficiently a company is managing its accounts payable by analyzing how many times a company pays off its suppliers within a given period. A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently, which can be a sign of good liquidity and strong supplier relationships.
Analyzing the payables turnover ratio for Insteel Industries Inc over the past few quarters, we can observe fluctuations in the ratio. In Q4 2023, the payables turnover ratio was 24.03, indicating that the company paid off its suppliers approximately 24 times during that period. This was a significant increase from the previous quarter but still lower than the ratio in Q4 2022.
Overall, it appears that Insteel Industries Inc has been managing its accounts payable efficiently, with the payables turnover ratio generally showing an increasing trend over the quarters. However, it is important to consider other financial metrics and factors in conjunction with the payables turnover ratio to get a comprehensive understanding of the company's financial performance and liquidity management.
Peer comparison
Dec 31, 2023