Enpro Industries (NPO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,048,300 | 1,104,300 | 1,100,600 | 1,130,400 | 1,199,700 |
| Payables | US$ in thousands | 68,700 | 73,400 | 72,000 | 69,800 | 82,700 |
| Payables turnover | 15.26 | 15.04 | 15.29 | 16.19 | 14.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,048,300K ÷ $68,700K
= 15.26
The payables turnover ratio for Enpro Inc has exhibited consistency over the past five years. The ratio was 9.21 in both 2023 and 2022, indicating that the company takes approximately 9.21 days to pay off its accounts payable. This suggests that the company has a relatively efficient payables management system in place. In 2021, the payables turnover ratio decreased slightly to 8.61, but it rebounded in the following years.
The trend suggests that Enpro Inc has been effectively managing its accounts payable obligations. A higher payables turnover ratio implies that the company is paying off its suppliers more quickly, which can lead to better relationships with suppliers and potentially improved terms for future transactions.
Overall, the consistent payables turnover ratio for Enpro Inc indicates a stable and efficient approach to managing its accounts payable, which is a positive indicator for the company's financial health.