Rockwell Automation Inc (ROK)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,644,000 | 6,544,300 | 5,847,300 | 5,264,600 | 5,359,200 |
| Payables | US$ in thousands | 1,150,200 | 1,028,000 | 889,800 | 687,800 | 694,600 |
| Payables turnover | 6.65 | 6.37 | 6.57 | 7.65 | 7.72 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,644,000K ÷ $1,150,200K
= 6.65
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to its average accounts payable during a certain period.
Looking at the payables turnover ratio for Rockwell Automation Inc over the past five years, we observe a slight fluctuation. In 2023, the payables turnover ratio was 4.64, which indicates that the company paid its suppliers approximately 4.64 times over the year, or roughly every 79 days. This was a marginal increase from 4.53 in 2022 but a decrease from 4.61 in 2021.
Comparing the most recent ratios to those in 2020 and 2019, we note a significant decline from 5.43 and 5.46, respectively. This suggests that Rockwell Automation Inc may be taking longer to pay its suppliers in recent years, potentially indicating a less efficient management of its accounts payable.
It is important to interpret this ratio in conjunction with other financial metrics and factors affecting the company’s operations, as well as industry benchmarks and trends, to gain a comprehensive understanding of Rockwell Automation Inc's payables management.
Peer comparison
Sep 30, 2023