RPM International Inc (RPM)
Payables turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,322,170 | 4,320,690 | 4,508,370 | 4,274,680 | 3,701,130 |
| Payables | US$ in thousands | 755,889 | 649,650 | 680,938 | 800,369 | 717,176 |
| Payables turnover | 5.72 | 6.65 | 6.62 | 5.34 | 5.16 |
May 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,322,170K ÷ $755,889K
= 5.72
The payables turnover ratio for RPM International Inc. demonstrates a trend of incremental improvement over the period from May 31, 2021, to May 31, 2024. Specifically, the ratio increased from 5.16 in 2021 to 5.34 in 2022, indicating a slight enhancement in the company's efficiency in settling its accounts payable within the fiscal year. This upward movement continued into 2023, reaching 6.62, which suggests a notable acceleration in paying its suppliers relative to the cost of goods sold during that period.
In the subsequent year, 2024, the ratio further increased marginally to 6.65, signifying a stabilized but still elevated rate of payments to suppliers. However, a decline is observed in 2025, where the ratio drops to 5.72. This decrease could indicate a slight slowdown in the turnover of payables, possibly due to extended payment terms negotiated with suppliers or changes in purchasing strategies.
Overall, the data reflects a general trend of increasing payables turnover from 2021 through 2024, highlighting improved efficiency or more prompt payment practices during that timeframe. The slight decrease in 2025 warrants further analysis to understand the underlying factors affecting payment cycles, such as supply chain dynamics, supplier agreements, or strategic payment management.
Peer comparison
May 31, 2025