RBC Bearings Incorporated (RBC)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 889,800 | 864,500 | 585,800 | 374,900 | 438,358 |
| Payables | US$ in thousands | 116,200 | 146,800 | 158,600 | 36,336 | 51,038 |
| Payables turnover | 7.66 | 5.89 | 3.69 | 10.32 | 8.59 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $889,800K ÷ $116,200K
= 7.66
The payables turnover ratio for RBC Bearings Incorporated has fluctuated over the past five years, indicating changes in the company's efficiency in managing its accounts payable.
In 2024, the payables turnover ratio was 7.66, which suggests that the company paid its suppliers approximately 7.66 times during the year. This represents an improvement from the previous year when the ratio was 5.89.
Comparing the 2024 ratio to earlier years, we see that the payables turnover ratio was lower in 2022 at 3.69 and in 2020 at 8.59, indicating that the company took longer to pay its suppliers during those years.
The highest payables turnover ratio in the past five years was in 2021 at 10.32, suggesting that the company was managing its payables more efficiently by paying suppliers more frequently during that year.
Overall, the trend in the payables turnover ratio for RBC Bearings Incorporated shows variability, with the company both improving and declining in its efficiency in managing its accounts payable over the five-year period. The company may want to further analyze the reasons behind these fluctuations to identify opportunities for enhancing its working capital management.
Peer comparison
Mar 31, 2024