Winnebago Industries Inc (WGO)
Payables turnover
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,198,500 | 4,380,280 | 3,223,760 | 2,252,000 | 1,678,480 |
| Payables | US$ in thousands | 146,900 | 217,500 | 180,030 | 132,490 | 81,635 |
| Payables turnover | 21.77 | 20.14 | 17.91 | 17.00 | 20.56 |
August 26, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,198,500K ÷ $146,900K
= 21.77
The payables turnover ratio for Winnebago Industries, Inc. has shown a fluctuating trend over the past five years. The ratio has increased from 15.42 in 2020 to 19.77 in 2023, which indicates an improvement in the company's ability to efficiently manage its accounts payable. This may suggest that the company is paying off its suppliers at a faster pace compared to previous years.
A higher payables turnover ratio could imply that Winnebago Industries is effectively managing its cash flow by leveraging supplier credit terms to its advantage. It may also indicate the company's ability to negotiate favorable terms with its suppliers, resulting in a shorter time between purchasing inventory and paying off the accounts payable.
However, it's important to note that a significantly high payables turnover ratio could also raise concerns about the company's relationship with its suppliers. If Winnebago Industries is aggressively pushing for shorter payment terms, it may risk damaging its supplier relationships or losing out on potential discounts for early payments.
Overall, the increasing trend in the payables turnover ratio suggests that Winnebago Industries, Inc. has been enhancing its efficiency in managing accounts payable, which could positively impact its working capital management and overall financial performance.
Peer comparison
Aug 26, 2023