Photronics Inc (PLAB)

Based on the payables turnover data of Photronics, Inc. from 2019 to 2023, it is evident that the company's payables turnover has fluctuated over the past five years. Payables turnover is a financial ratio that measures how efficiently a company manages its trade credit by comparing its cost of goods sold to its accounts payable. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

In 2019, the payables turnover ratio was 4.70, indicating that for every dollar of accounts payable, the company paid its suppliers 4.70 times during the year. This suggests that the company was managing its trade credit relatively efficiently.

In 2020, the payables turnover ratio increased to 6.30, which implies that the company improved its ability to pay its suppliers more frequently. This could be a positive sign of effective cash flow management and potentially good relationships with suppliers.

The payables turnover ratio continued to rise in 2021 to 6.09, which, while slightly lower than the previous year, still reflects a solid ability to manage payables efficiently.

In 2022, the payables turnover ratio increased again to 6.67, indicating that the company was paying its suppliers even more frequently, suggesting continued effective management of trade credit.

In 2023, the payables turnover ratio was 6.62, which remained relatively consistent with the previous year. Despite this minor decrease, the company's ability to manage its payables efficiently continues to be strong.

Overall, the trend in payables turnover for Photronics, Inc. over the past five years demonstrates a consistent and efficient management of trade credit. This could indicate that the company has been successful in maintaining positive relationships with suppliers and effectively managing its cash flow, which are positive indicators for the company's financial health and operational efficiency.

Peer comparison

Oct 31, 2023