Triumph Group Inc (TGI)
Payables turnover
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 967,556 | 988,033 | 963,075 | 909,745 | 941,412 | 955,198 | 997,512 | 1,051,785 | 1,073,063 | 1,147,939 | 1,256,364 | 1,376,101 | 1,476,266 | 1,673,310 | 1,878,839 | 2,119,003 | 2,307,393 | 2,488,539 | 2,678,145 | 2,803,660 |
| Payables | US$ in thousands | 167,349 | 133,550 | 154,955 | 152,905 | 173,575 | 166,501 | 154,588 | 132,734 | 161,534 | 168,894 | 142,600 | 164,753 | 179,473 | 195,300 | 242,475 | 299,269 | 457,694 | 379,989 | 418,706 | 426,587 |
| Payables turnover | 5.78 | 7.40 | 6.22 | 5.95 | 5.42 | 5.74 | 6.45 | 7.92 | 6.64 | 6.80 | 8.81 | 8.35 | 8.23 | 8.57 | 7.75 | 7.08 | 5.04 | 6.55 | 6.40 | 6.57 |
March 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $967,556K ÷ $167,349K
= 5.78
The payables turnover ratio for Triumph Group Inc has fluctuated over the past eight quarters. The ratio measures the company's efficiency in managing its trade payables by evaluating how quickly it pays off its suppliers.
From December 2019 to March 2020, the payables turnover ratio decreased from 6.57 to 5.04, indicating that Triumph Group Inc took longer to pay its suppliers during this period. However, there was an improvement in the ratio from March 2020 to September 2020, reaching 7.75, suggesting a more efficient payment cycle.
Subsequently, there was a decline in efficiency as the payables turnover ratio decreased to 5.04 by March 2021. However, there was a positive trend from March 2021 to December 2023, with the ratio steadily increasing to 7.40. This upward trend signifies that Triumph Group Inc improved its ability to settle its payables more efficiently during this period.
Overall, while the payables turnover ratio has displayed fluctuations, the recent trend indicates an enhancement in the company's management of its payable obligations, which may reflect improved working capital management or vendor relationships. Investors and stakeholders may view this positively as it suggests better control over the company's payment cycles.
Peer comparison
Mar 31, 2024