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 '2021', SWK's payables turnover was 2.73, indicating how promptly the company pays its suppliers. Industry average for Industrial Machinery/Components in '2021' stood at 4.38.
• In '2022', SWK's payables turnover was 4.00, indicating how promptly the company pays its suppliers. The increase since '2021' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2022' stood at 4.59. Industry average increased by 0.22 compared to previous year.
• In '2023', SWK's payables turnover was 4.56, indicating how promptly the company pays its suppliers. The increase since '2022' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2023' stood at 4.95. Industry average increased by 0.35 compared to previous year.
• In '2024', SWK's payables turnover was 4.13, indicating how promptly the company pays its suppliers. The decline from '2023' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2024' stood at 4.98. Industry average increased by 0.04 compared to previous year.
Overall, SWK's payables turnover has been volatile but showed an upward trend over the past 4 years.

Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable

Good Range: Ranges 5-15 depending on industry.