Standex International Corporation (SXI)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 619,055 | 641,318 | 650,800 | 601,843 | 389,080 |
| Payables | US$ in thousands | 63,364 | 68,601 | 74,520 | 74,756 | 54,910 |
| Payables turnover | 9.77 | 9.35 | 8.73 | 8.05 | 7.09 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $619,055K ÷ $63,364K
= 9.77
The payables turnover ratio for Standex International Corporation has shown a consistent increasing trend over the past five years. As of June 30, 2024, the company's payables turnover ratio stands at 9.77, indicating that the company is able to convert its accounts payable into cash almost 10 times within the year.
This improvement in the payables turnover ratio suggests that Standex International Corporation is managing its accounts payable more efficiently, possibly negotiating better payment terms with suppliers or optimizing its working capital management. A higher payables turnover ratio generally indicates that the company is taking longer to pay its suppliers, which can potentially improve cash flow and liquidity.
Overall, the increasing trend in the payables turnover ratio reflects positively on Standex International Corporation's ability to effectively manage its accounts payable and cash flow.
Peer comparison
Jun 30, 2024