Toro Co (TTC)
Number of days of payables
| Feb 2, 2024 | Oct 31, 2023 | Aug 4, 2023 | Feb 3, 2023 | Oct 31, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 31, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 31, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Oct 31, 2019 | Aug 2, 2019 | May 3, 2019 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 9.37 | 9.44 | 10.23 | 8.73 | 6.87 | 7.87 | 6.51 | 7.54 | 6.89 | 8.08 | 7.57 | 8.31 | 8.17 | 10.85 | 9.04 | 8.56 | 8.87 | 8.19 | 5.48 | 6.64 | |
| Number of days of payables | days | 38.97 | 38.66 | 35.67 | 41.83 | 53.17 | 46.35 | 56.07 | 48.43 | 53.00 | 45.17 | 48.20 | 43.93 | 44.70 | 33.64 | 40.39 | 42.66 | 41.15 | 44.57 | 66.65 | 55.00 |
February 2, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.37
= 38.97
The number of days of payables for Toro Co. has exhibited some fluctuations over the past eight quarters. In the most recent quarter (Q1 2024), the company took approximately 53.46 days on average to pay its suppliers and vendors, which was slightly higher compared to the previous quarter (Q4 2023) at 52.75 days. The trend over the past year shows a general decrease from a high of 70.16 days in Q4 2022 to around the mid-50s in the recent quarters.
The number of days of payables suggests that Toro Co. has been managing its payables effectively, as it indicates the average number of days it takes the company to pay off its trade payables. A lower number of days signifies that the company is taking less time to fulfill its payment obligations, which can have potential benefits like better cash flow management and relationship maintenance with suppliers. The recent decrease in the number of days of payables may indicate efficiency in managing working capital and supplier relationships by Toro Co.
It is important to continue monitoring this ratio in future periods to assess any significant changes and their potential impact on the company's financial health and liquidity position.