Woodward Inc (WWD)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,792,900 | 2,723,283 | 2,693,684 | 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 |
| Payables | US$ in thousands | 287,457 | 255,391 | 258,670 | 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 |
| Payables turnover | 9.72 | 10.66 | 10.41 | 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 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,792,900K ÷ $287,457K
= 9.72
Woodward Inc's payables turnover ratio has been relatively stable over the past 20 quarters, ranging from a low of 8.55 to a high of 16.19. The payables turnover ratio measures how efficiently a company is able to pay its suppliers. A higher turnover ratio indicates that the company is paying its suppliers more frequently, which can be a sign of good financial health and strong working capital management.
Based on the data provided, Woodward Inc's payables turnover has generally been above 9, with some fluctuations quarter to quarter. The highest payables turnover ratio was observed in Q4 2020 at 16.19, which may indicate that the company was managing its payables effectively during that period. On the other hand, the lowest ratio was seen in Q3 2020 at 8.55, which could suggest a slower payment cycle during that time.
Overall, Woodward Inc's payables turnover ratio has displayed a consistent pattern of staying above 9, signaling effective management of its payables and strong relationships with suppliers. It's worth noting that a stable and relatively high payables turnover ratio can indicate efficient working capital management and a healthy financial position for the company.