RPM International Inc (RPM)
Payables turnover
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,624,440 | 6,662,500 | 6,704,620 | 6,730,040 | 6,693,980 | 6,634,320 | 6,535,260 | 6,439,670 | 6,222,190 | 5,994,610 | 5,827,380 | 5,633,850 | 5,530,120 | 5,299,090 | 5,224,760 | 5,200,730 | 5,152,730 | 5,252,030 | 5,237,630 | 5,219,950 |
| Payables | US$ in thousands | 649,650 | 577,861 | 650,771 | 684,075 | 680,938 | 577,761 | 679,596 | 785,984 | 800,369 | 675,529 | 655,502 | 647,568 | 717,176 | 569,002 | 540,678 | 525,980 | 535,311 | 475,613 | 475,288 | 477,050 |
| Payables turnover | 10.20 | 11.53 | 10.30 | 9.84 | 9.83 | 11.48 | 9.62 | 8.19 | 7.77 | 8.87 | 8.89 | 8.70 | 7.71 | 9.31 | 9.66 | 9.89 | 9.63 | 11.04 | 11.02 | 10.94 |
May 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,624,440K ÷ $649,650K
= 10.20
The payables turnover ratio for RPM International Inc has exhibited fluctuations over the past few years. The ratio has ranged from a low of 7.71 to a high of 11.53. Generally, a higher payables turnover ratio indicates that the company is able to efficiently manage its accounts payable by paying off its suppliers more frequently.
In the most recent period ending May 31, 2024, RPM International Inc's payables turnover ratio was 10.20, which suggests that the company is able to convert its accounts payable into cash approximately 10.20 times during the year. This indicates a relatively strong ability to manage its payables efficiently.
It is worth noting that there was an increase in the payables turnover ratio from the previous period, indicating an improvement in managing the company's payables. However, the ratio should be analyzed in conjunction with other financial metrics to get a more comprehensive understanding of the company's overall financial health and efficiency in managing its working capital.
Peer comparison
May 31, 2024