Toro Co (TTC)
Payables turnover
| Oct 31, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Oct 31, 2023 | Aug 4, 2023 | May 5, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,085,000 | 4,007,401 | 4,099,591 | 4,058,691 | 4,158,191 | 4,291,260 | 4,188,070 | 4,146,870 | 3,972,894 | 3,835,019 | 3,689,716 | 3,576,207 | 3,465,104 | 3,324,685 | 3,193,408 | 3,027,320 | 2,971,953 | 2,916,150 | 2,958,299 | 2,977,807 |
| Payables | US$ in thousands | 452,700 | 437,800 | 512,400 | 421,800 | 430,000 | 407,400 | 514,800 | 475,200 | 578,700 | 487,030 | 566,769 | 474,483 | 503,116 | 411,413 | 421,738 | 364,361 | 363,953 | 268,747 | 327,354 | 348,003 |
| Payables turnover | 9.02 | 9.15 | 8.00 | 9.62 | 9.67 | 10.53 | 8.14 | 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 |
October 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,085,000K ÷ $452,700K
= 9.02
The payables turnover ratio for Toro Co has shown variability over the past few years, ranging from a low of 6.51 to a high of 10.53. The ratio measures how efficiently the company is managing its accounts payable by evaluating how many times the company pays off its suppliers in a given period.
A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which may suggest good relationships with suppliers and efficient working capital management. On the other hand, a lower ratio could indicate a slower payment cycle, potentially signaling either strained supplier relationships or a strategic effort to extend payment terms.
Overall, Toro Co's payables turnover has generally been above 8 in recent years, indicating a relatively efficient management of its accounts payable. However, the slight fluctuations in the ratio suggest some variability in the company's payment practices over time.
Further analysis would be needed to understand the specific drivers behind these fluctuations and assess whether they align with the company's overall financial strategy and performance.