Woodward Inc (WWD)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	2,656,560	2,556,151	2,453,641	2,319,260	2,171,191	2,096,999	2,026,517	1,971,530	1,954,350	1,931,348	1,901,813	1,901,876	1,996,702	2,173,184	1,724,359	1,869,410	1,926,407	1,846,863	2,454,653	2,321,709
Payables	US$ in thousands	253,398	234,328	223,091	220,386	219,365	230,519	195,402	188,543	165,867	170,909	163,248	162,715	158,568	134,242	160,887	218,721	218,486	240,460	243,071	259,665
Payables turnover		10.48	10.91	11.00	10.52	9.90	9.10	10.37	10.46	11.78	11.30	11.65	11.69	12.59	16.19	10.72	8.55	8.82	7.68	10.10	8.94

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,656,560K ÷ $253,398K
= 10.48

Woodward Inc's payables turnover ratio has been relatively stable over the past eight quarters, ranging from 8.06 to 9.65 times. This ratio measures how efficiently the company is managing its trade payables by comparing the total purchases made on credit to the average accounts payable balance. A higher turnover ratio generally indicates that the company is paying its suppliers more quickly.

The average payables turnover ratio for Woodward Inc over this period is approximately 9.18 times. This suggests that, on average, the company is able to convert its accounts payable into cash or settle its outstanding liabilities about 9.18 times a year. A consistent and high turnover ratio can indicate good working capital management and strong supplier relationships.

It is worth noting that the slight fluctuations in the ratio from quarter to quarter are within a reasonable range, indicating a consistent approach to managing trade payables. However, further analysis of the company's payables turnover in comparison to industry peers or historical trends could provide additional insights into its financial performance and operational efficiency.