RPM International Inc (RPM)
Payables turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,624,430 | 6,674,070 | 6,222,310 | 5,530,120 | 5,152,730 |
| Payables | US$ in thousands | 649,650 | 680,938 | 800,369 | 717,176 | 535,311 |
| Payables turnover | 10.20 | 9.80 | 7.77 | 7.71 | 9.63 |
May 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,624,430K ÷ $649,650K
= 10.20
The payables turnover ratio for RPM International Inc has shown a fluctuating trend over the past five years. In particular:
- In 2024, the payables turnover ratio increased to 10.20, indicating that the company is managing its accounts payable more efficiently compared to the previous year.
- In 2023, the ratio was slightly lower at 9.80 but still showed a strong ability to turn over its payables.
- In 2022, there was a notable decrease in the ratio to 7.77, suggesting that the company took longer to pay its suppliers compared to the prior year.
- In 2021, the ratio remained relatively stable at 7.71, indicating consistent payables management.
- In 2020, there was a significant improvement in the payables turnover ratio to 9.63, showcasing a more efficient use of accounts payable.
Overall, the payables turnover ratio for RPM International Inc has demonstrated variations in managing its payables over the years, with improvements seen in some years and slight declines in others. This ratio provides insight into how effectively the company is utilizing its accounts payable to finance its operations and the efficiency of its relationships with suppliers.
Peer comparison
May 31, 2024