Quanex Building Products (NX)
Payables turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,188,220 | 997,832 | 1,083,740 | 961,734 | 763,842 |
| Payables | US$ in thousands | 124,404 | 74,371 | 77,907 | 86,765 | 77,335 |
| Payables turnover | 9.55 | 13.42 | 13.91 | 11.08 | 9.88 |
October 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,188,220K ÷ $124,404K
= 9.55
Quanex Building Products' payables turnover ratio has fluctuated over the past five years. In 2024, the payables turnover ratio was 9.55, a decrease from the previous year's ratio of 13.42. This decrease suggests that the company took longer to pay its suppliers in 2024 compared to 2023.
Examining a longer-term trend, the payables turnover ratio has generally been in the range of 9 to 14 over the past five years, indicating that Quanex Building Products has been effectively managing its accounts payable. A higher turnover ratio typically suggests that the company is paying its suppliers more quickly, which could be beneficial in terms of maintaining good relationships and potentially negotiating better terms.
Analyzing the 2024 ratio in isolation, a ratio of 9.55 implies that Quanex Building Products paid off its accounts payable approximately 9.55 times during the year. Further qualitative analysis would be necessary to understand the reasons behind the decrease in the payables turnover ratio from the previous year and assess the impact on the company's financial health and supplier relationships.
Peer comparison
Oct 31, 2024