National Presto Industries Inc (NPK)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 273,460 | 296,431 | 281,310 | 277,844 | 266,498 | 249,041 | 272,415 | 279,758 | 291,381 | 287,682 | 284,906 | 280,852 | 267,705 | 262,126 | 243,066 | 234,746 | 236,585 | 227,733 | 239,530 | 242,243 |
| Payables | US$ in thousands | 38,232 | 44,361 | 38,239 | 35,882 | 28,944 | 30,978 | 27,811 | 29,653 | 32,759 | 41,814 | 26,375 | 27,682 | 33,474 | 28,891 | 32,356 | 26,261 | 21,652 | 27,701 | 28,311 | 26,510 |
| Payables turnover | 7.15 | 6.68 | 7.36 | 7.74 | 9.21 | 8.04 | 9.80 | 9.43 | 8.89 | 6.88 | 10.80 | 10.15 | 8.00 | 9.07 | 7.51 | 8.94 | 10.93 | 8.22 | 8.46 | 9.14 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $273,460K ÷ $38,232K
= 7.15
The payables turnover ratio measures how efficiently a company manages its trade credit by evaluating how quickly it pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could be beneficial for maintaining good relationships with vendors.
Analyzing the historical payables turnover ratios of National Presto Industries Inc, we observe fluctuations in the ratio over the past five years. The trend indicates that the company has generally maintained a moderate to high turnover rate, suggesting efficient management of payables.
In the most recent period, the payables turnover ratio decreased to 7.15 compared to the previous quarter, implying that the company took longer to pay its suppliers. This could be due to various factors such as changes in payment terms, seasonal variations in business operations, or strategic decisions to optimize cash flow.
On a year-over-year basis, the payables turnover ratio has shown variability, with fluctuations observed in different quarters. It is worth noting that the ratio reached its peak in the second and third quarters of 2021, indicating a more rapid turnover of payables during those periods.
Overall, while the payables turnover ratio of National Presto Industries Inc has shown some variability, the company generally maintains a healthy turnover rate, reflecting efficient management of its payables and relationships with suppliers. Continued monitoring of this ratio can provide insights into the company's liquidity management and supplier relationships in the future.
Peer comparison
Dec 31, 2023