National Presto Industries Inc (NPK)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 273,460 | 266,498 | 291,381 | 267,705 | 236,585 |
| Payables | US$ in thousands | 38,232 | 28,944 | 32,759 | 33,474 | 21,652 |
| Payables turnover | 7.15 | 9.21 | 8.89 | 8.00 | 10.93 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $273,460K ÷ $38,232K
= 7.15
The payables turnover ratio for National Presto Industries Inc has been fluctuating over the past five years. It decreased from 10.93 in 2019 to 7.15 in 2023. This decline indicates that the company is taking longer to pay its trade payables compared to the previous years. A lower payables turnover ratio may suggest that the company is managing its payables less efficiently or experiencing difficulties in meeting its payment obligations.
It's important to note that a high payables turnover ratio can indicate that the company is efficiently managing its payables by paying them off quickly. On the other hand, an excessively high ratio might suggest that the company may be having issues with its suppliers or could be taking advantage of extended payment terms.
Overall, a downward trend in payables turnover warrants further investigation to understand the reasons behind the changes and assess the impact on the company's liquidity and financial health.
Peer comparison
Dec 31, 2023