Toro Co (TTC)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,950,891 | 4,059,561 | 4,168,560 | 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 | 2,831,455 | 2,495,122 | 2,145,121 | 1,868,334 |
| Payables | US$ in thousands | 421,800 | 430,000 | 407,366 | 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 | 319,230 | 304,661 | 391,692 | 281,526 |
| 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 |
February 2, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,950,891K ÷ $421,800K
= 9.37
The payables turnover ratio of Toro Co. has shown fluctuations over the past eight quarters, ranging from 4.93 to 7.60. In Q3 2023, the payables turnover was at its highest at 7.60, indicating that the company's payables were being converted into purchases or cash more frequently during that period. This suggests that Toro Co. was managing its payables efficiently and possibly had strong bargaining power with its suppliers.
However, in Q2 2022, the payables turnover was at its lowest at 4.93, indicating a slowdown in the conversion of payables into purchases or cash. This could signal a shift in the company's payment practices or a change in its relationship with suppliers.
Overall, the trend of payables turnover ratios for Toro Co. suggests varying levels of liquidity and efficiency in managing its accounts payable over the past two years. It would be important for investors and stakeholders to monitor this metric to assess the company's working capital management and supplier relationships.