Matthews International Corporation (MATW)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,266,030 | 1,303,220 | 1,240,120 | 1,129,200 | 1,000,540 |
| Payables | US$ in thousands | 108,362 | 114,316 | 121,359 | 112,722 | 82,921 |
| Payables turnover | 11.68 | 11.40 | 10.22 | 10.02 | 12.07 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,266,030K ÷ $108,362K
= 11.68
The payables turnover ratio measures how efficiently Matthews International Corporation is managing its trade payables. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a given period.
From the data provided, we observe an increasing trend in the payables turnover ratio over the five-year period, with values of 11.68 in 2024, 11.40 in 2023, 10.22 in 2022, 10.02 in 2021, and 12.07 in 2020. This suggests that the company has been improving its efficiency in managing trade payables year over year.
With a payables turnover of 11.68 in 2024, it indicates that Matthews International Corporation paid its trade payables approximately 11.68 times during the year. This high turnover ratio suggests that the company is prompt in paying its suppliers, possibly benefiting from early payment discounts or maintaining good relationships with its suppliers.
Overall, the increasing trend in payables turnover reflects a positive aspect of Matthews International Corporation's financial management in efficiently managing its accounts payable and maintaining good relationships with its suppliers.