Woodward Inc (WWD)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,792,900 | 2,557,560 | 2,097,000 | 1,931,350 | 2,173,180 |
| Payables | US$ in thousands | 287,457 | 234,328 | 230,519 | 170,909 | 134,242 |
| Payables turnover | 9.72 | 10.91 | 9.10 | 11.30 | 16.19 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,792,900K ÷ $287,457K
= 9.72
Woodward Inc's payables turnover ratio measures how efficiently the company manages its accounts payable by analyzing how many times the company pays off its suppliers within a given period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a signal of good financial health or strong supplier relationships.
From 2020 to 2024, Woodward Inc's payables turnover ratio has been fluctuating. In 2020, the payables turnover ratio was relatively high at 16.19, indicating that the company was paying off its suppliers more frequently. However, over the following years, the ratio decreased, with a notable decrease in 2022 to 9.10. This suggests that the company took longer to pay off its suppliers in 2022 compared to previous years.
In 2023, there was a slight increase in the payables turnover ratio to 10.91, indicating an improvement in managing payables. However, in 2024, the ratio slightly decreased again to 9.72. Overall, the trend in payables turnover suggests some variability in Woodward Inc's management of accounts payable over the past five years.
It's important to consider industry norms and compare Woodward Inc's payables turnover ratio with competitors to gain a better understanding of its performance and efficiency in managing payables. Additionally, further analysis of the company's cash flow and working capital management practices would provide more insights into its financial health and liquidity position.