Worthington Industries Inc (WOR)
Payables turnover
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,187,110 | 3,210,811 | 3,317,387 | 3,560,910 | 3,928,994 | 4,896,760 | 4,875,250 | 4,527,404 | 3,926,995 | 3,286,896 | 2,834,244 | 2,532,351 | 2,301,917 | 2,355,357 | 2,466,765 | 2,615,782 | 2,906,884 | 3,042,793 | 3,173,059 | 3,279,601 |
| Payables | US$ in thousands | 108,660 | 447,119 | 526,686 | 126,743 | 489,346 | 481,273 | 580,509 | 668,438 | 722,284 | 610,278 | 653,377 | 567,392 | 412,793 | 337,976 | 294,172 | 247,017 | 361,356 | 330,959 | 351,363 | 393,517 |
| Payables turnover | 29.33 | 7.18 | 6.30 | 28.10 | 8.03 | 10.17 | 8.40 | 6.77 | 5.44 | 5.39 | 4.34 | 4.46 | 5.58 | 6.97 | 8.39 | 10.59 | 8.04 | 9.19 | 9.03 | 8.33 |
February 29, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,187,110K ÷ $108,660K
= 29.33
The payables turnover ratio for Worthington Industries Inc has exhibited fluctuations over the past few quarters. The ratio indicates the number of times a company pays off its suppliers during a specific period. A higher payables turnover ratio typically suggests that the company is efficiently managing its accounts payable by paying its suppliers more frequently.
Looking at the numbers, we see that there was a significant increase in the payables turnover ratio to 29.33 in February 2024, which may indicate a more frequent payment cycle during that period. This is a notable increase compared to the previous quarter's ratio of 7.18 in November 2023. Prior to that, there was a relatively stable trend in the payables turnover ratio, hovering around the mid-single digits.
Analyzing the ratios in a sequential manner, there seems to be some seasonality or specific factors affecting the payables turnover ratio for Worthington Industries Inc. It will be important to further investigate the reasons behind these fluctuations to determine if they are driven by strategic decisions, changes in supplier relationships, or other operational factors impacting the company's accounts payable management.
Peer comparison
Feb 29, 2024