Lancaster Colony Corporation (LANC)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,675,190 | 1,686,070 | 1,574,960 | 1,293,880 | 1,163,820 |
| Payables | US$ in thousands | 118,811 | 111,758 | 114,972 | 110,338 | 71,433 |
| Payables turnover | 14.10 | 15.09 | 13.70 | 11.73 | 16.29 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,675,190K ÷ $118,811K
= 14.10
Lancaster Colony Corporation's payables turnover has varied over the past five years, ranging from 11.73 to 16.29. The payables turnover ratio represents the efficiency with which the company pays its suppliers. A higher ratio indicates that the company is paying off its trade payables more frequently during the year.
In this case, the highest payables turnover ratio was observed in 2020 at 16.29, indicating that the company was managing its payables more efficiently that year. However, this ratio decreased in the following years, reaching a low of 11.73 in 2021 before slightly increasing again in the most recent year to 14.10.
The fluctuation in payables turnover may indicate changes in the company's payment practices, supplier relationships, or inventory management. It is essential for investors and stakeholders to monitor this ratio to understand how effectively the company is managing its payables and maintaining relationships with its suppliers.
Peer comparison
Jun 30, 2024