Worthington Industries Inc (WOR)
Payables turnover
| Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,643,948 | 2,433,631 | 2,457,332 | 2,563,908 | 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 |
| Payables | US$ in thousands | 82,768 | 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 |
| Payables turnover | 19.86 | 22.40 | 5.50 | 4.87 | 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 |
August 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,643,948K ÷ $82,768K
= 19.86
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the amount of purchases made on credit to the average accounts payable balance. A higher payables turnover ratio implies that the company is paying off its suppliers quickly.
Based on the data provided for Worthington Industries Inc over the past few years, we observe fluctuations in the payables turnover ratio. The ratio ranged from a low of 4.34 in August 2021 to a high of 28.10 in May 2023.
In general, a higher payables turnover ratio is favorable as it indicates that the company is effectively managing its payables and paying its suppliers promptly. However, a very high ratio may also suggest a stringent payables policy that could strain supplier relationships.
It is important to consider the industry norms and trends over time when analyzing payables turnover, as the optimal ratio can vary based on factors such as the nature of the business, supplier relationships, and market conditions. Further analysis and comparison with industry peers would provide additional insights into Worthington Industries' payables management performance.
Peer comparison
Aug 31, 2024