RPM International Inc (RPM)
Payables turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,322,162 | 4,299,542 | 4,306,288 | 4,269,568 | 4,320,688 | 4,384,168 | 4,446,492 | 4,503,762 | 4,508,372 | 4,512,702 | 4,469,853 | 4,425,453 | 4,274,673 | 4,080,203 | 3,942,364 | 3,785,187 | 3,701,132 | 3,555,218 | 3,496,993 | 3,469,144 |
| Payables | US$ in thousands | 755,889 | 640,446 | 672,921 | 693,519 | 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 |
| Payables turnover | 5.72 | 6.71 | 6.40 | 6.16 | 6.65 | 7.59 | 6.83 | 6.58 | 6.62 | 7.81 | 6.58 | 5.63 | 5.34 | 6.04 | 6.01 | 5.85 | 5.16 | 6.25 | 6.47 | 6.60 |
May 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,322,162K ÷ $755,889K
= 5.72
The payables turnover ratio for RPM International Inc has exhibited notable fluctuations over the observed period. Beginning at a value of 6.60 as of August 31, 2020, the ratio demonstrated a gradual decline, reaching its lowest point of approximately 5.16 by May 31, 2021. This decreasing trend suggests a lengthening of the average payable period during this interval, potentially indicating an extension in the company's payment terms or a strategic delay in settling supplier obligations.
Subsequently, the ratio experienced a reversal, increasing back to around 6.58 by November 30, 2022, reflecting a trend toward more rapid payments to suppliers and potentially improved liquidity management or shorter credit terms negotiated with suppliers. The peak value noted was approximately 7.81 as of February 28, 2023, which signifies a relatively swift settlement cycle of payables during this time.
Following this peak, the ratio entered a declining phase again, stabilizing around 6.62 on May 31, 2023, and marginally decreasing to approximately 6.16 by August 31, 2024. The subsequent data presents slight upward movements, with values reaching approximately 6.83 in November 2023 and then fluctuating around 6.40 to 6.71 through early 2025.
Overall, the payables turnover ratio demonstrates periods of contraction and expansion, suggesting shifts in the company's payment practices, supplier relationships, or strategic financial management. The variation indicates a dynamic approach to managing accounts payable, balancing liquidity needs with supplier negotiations over the analyzed timeframe.
Peer comparison
May 31, 2025