Woodward Inc (WWD)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,557,560 | 2,097,000 | 1,931,350 | 2,173,180 | 2,459,880 |
| Payables | US$ in thousands | 234,328 | 230,519 | 170,909 | 134,242 | 240,460 |
| Payables turnover | 10.91 | 9.10 | 11.30 | 16.19 | 10.23 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,557,560K ÷ $234,328K
= 10.91
The payables turnover ratio for Woodward Inc has fluctuated over the past five years. The ratio measures the number of times a company pays off its accounts payable during a specific period.
In 2023, Woodward Inc's payables turnover ratio was 9.55, indicating that the company paid off its accounts payable approximately 9.55 times during the year. This is an improvement from 2022 when the ratio was 8.06, suggesting a slower rate of paying off accounts payable compared to the most recent year.
The payables turnover ratio was highest in 2020 at 13.82, signifying a more efficient management of accounts payable during that year. However, the ratio dipped in 2021 to 9.92 before increasing again in 2022.
Overall, the trend in payables turnover indicates some variability in the company's ability to manage and pay off its accounts payable over the past five years. This suggests that Woodward Inc may need to focus on improving its payables management processes to ensure consistency in the future.