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

Company name
Symbol
Payables turnover
National Presto Industries Inc
NPK
7.15
Axon Enterprise Inc.
AXON
12.56
Sturm Ruger & Company Inc
RGR
36.95
Vista Outdoor Inc
VSTO
16.51