REX American Resources Corporation (REX)

Payables turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Cost of revenue	US$ in thousands	735,166	800,269	677,242	353,131	397,298
Payables	US$ in thousands	42,073	34,091	32,266	16,907	18,900
Payables turnover		17.47	23.47	20.99	20.89	21.02

January 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $735,166K ÷ $42,073K
= 17.47

The payables turnover for REX American Resources Corporation has exhibited some fluctuations over the past five years. The ratio decreased from 23.47 in January 2023 to 17.47 in January 2024. This decrease may be an indication that the company is taking longer to pay its suppliers in the most recent year compared to the previous year.

Despite this decrease, the payables turnover ratio remains relatively high, indicating that the company is efficient in managing its accounts payable. A high payables turnover ratio suggests that REX American Resources Corporation is able to pay off its suppliers quickly, which can be beneficial in terms of maintaining good supplier relationships and potentially negotiating favorable terms.

Overall, while the recent decrease in payables turnover warrants further investigation, the historical trend of consistently high payables turnover ratios suggests that REX American Resources Corporation has been effectively managing its accounts payable over the past five years.