Worthington Industries Inc (WOR)
Number of days of payables
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 33.56 | 6.77 | 4.46 | 10.59 | 8.33 | |
| Number of days of payables | days | 10.88 | 53.89 | 81.78 | 34.47 | 43.80 |
May 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 33.56
= 10.88
The number of days of payables for Worthington Enterprises Inc. has fluctuated over the past five years. In 2023, the company's number of days of payables stood at 45.39 days, representing a decrease from the previous year's 53.89 days. This suggests that the company is taking fewer days to pay its suppliers, which could indicate improved liquidity or more efficient management of payables.
Comparing this to 2021, where the number of days of payables was 81.78 days, it is evident that there has been a significant improvement in the management of payables. The 2023 figure is also lower than the 2019 and 2020 numbers, indicating a trend of decreasing payables turnover.
This downward trend in the number of days of payables could potentially signal an improvement in the company's working capital management and cash flow. However, it is essential to consider the reasons behind this trend, as a substantial decrease in payables might also indicate strained relationships with suppliers or potential issues regarding the company's creditworthiness.
Overall, the decreasing trend in the number of days of payables reflects a positive development for Worthington Enterprises Inc., but further analysis of its implications on the company's operations and financial health is needed.
Peer comparison
May 31, 2023