Mueller Water Products (MWA)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 855,700 | 896,200 | 883,100 | 752,500 | 635,900 |
| Payables | US$ in thousands | 109,900 | 102,900 | 122,800 | 92,000 | 67,300 |
| Payables turnover | 7.79 | 8.71 | 7.19 | 8.18 | 9.45 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $855,700K ÷ $109,900K
= 7.79
The payables turnover ratio for Mueller Water Products has experienced notable fluctuations over the specified period, indicating changes in the company's efficiency in managing its accounts payable.
In September 2020, the payables turnover stood at 9.45, suggesting the company was settling its payables approximately 9.45 times within the fiscal year. This high turnover rate reflects a relatively prompt payment cycle and efficient management of short-term liabilities.
By September 2021, the ratio decreased to 8.18, indicating a slight elongation in the payment period, which may suggest either strategic extensions in payable terms or a temporary slowdown in payments.
The downward trend continued into September 2022, where the ratio declined further to 7.19. This reduction signifies a further lengthening of the payables cycle, potentially implying either improved negotiating terms with suppliers or cautious cash flow management.
In September 2023, the payables turnover increased to 8.71. This uptick points to a somewhat accelerated payment pattern compared to the previous year, possibly reflecting a strategic decision to reduce accounts payable or improved liquidity management.
By September 2024, the ratio slightly declined to 7.79, indicating a marginal slowdown in the payment cycle compared to the previous year.
Overall, the trend observed suggests that Mueller Water Products has experienced periods of both elongation and contraction in its payables turnover, with the ratios indicating a somewhat cautious yet adaptable approach to managing trade payables across the analyzed timeframe. The fluctuations may reflect strategic shifts in supplier payment policies, cash flow considerations, or operational adjustments.
Peer comparison
Sep 30, 2024