Monro Muffler Brake Inc (MNRO)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 40,201 | 42,897 | 44,328 | 37,372 | 33,812 |
| Payables | US$ in thousands | 251,940 | 261,724 | 131,989 | 112,378 | 99,504 |
| Payables turnover | 0.16 | 0.16 | 0.34 | 0.33 | 0.34 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $40,201K ÷ $251,940K
= 0.16
The payables turnover ratio for Monro Muffler Brake Inc has remained relatively consistent over the past five years. It was 0.16 in both 2024 and 2023, indicating that the company takes approximately 0.16 years, or around 59 days, to pay off its accounts payable. This suggests that the company has a consistent payment pattern in settling its obligations to suppliers.
Comparing the most recent data to earlier years, there has been a notable decline in the payables turnover ratio from 0.34 in 2022 to 0.16 in 2024. This could be an indication that Monro Muffler Brake Inc is taking longer to settle its payables, potentially signaling a shift in its payment policies or liquidity constraints.
Overall, a lower payables turnover ratio could point towards a less efficient management of trade credit, potentially impacting relationships with suppliers or the company's ability to take advantage of trade discounts. Further analysis of the company's cash flow management and working capital practices may reveal additional insights into the reasons behind the trend in payables turnover.
Peer comparison
Mar 31, 2024