Ofa Ordinary Shares(Ofal) Financials: Payables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - payables turnover
This chart shows the historical trend of payables turnover for OFAL compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Payables Turnover
Definition: Payables turnover shows how fast the company pays its suppliers for goods or services bought on credit. A high turnover means the company pays suppliers quickly, which may reflect strong cash flow or favorable terms. A very low turnover might mean the company is stretching payments to preserve cash — or possibly experiencing financial strain.
Interpretation:
• In '2023', OFAL's payables turnover was 2.71, indicating how promptly the company pays its suppliers. Industry average for Military/Government/Technical in '2023' stood at 5.85.
• In '2024', OFAL's payables turnover was 2.43, indicating how promptly the company pays its suppliers. The decline from '2023' may indicate some operational or financial challenges. Industry average for Military/Government/Technical in '2024' stood at 5.35. Industry average declined by 0.50 from previous year.
Overall, OFAL's payables turnover has consistently declined during the past 2 years.
Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Good Range: Ranges 5-15 depending on industry.