Toppoint(Topp) 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 TOPP 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 '2022', TOPP's payables turnover was 36.09, indicating how promptly the company pays its suppliers. Industry average for Trucking Freight/Courier Services in '2022' stood at 5.09.
• In '2023', TOPP's payables turnover was 28.28, indicating how promptly the company pays its suppliers. The decline from '2022' may indicate some operational or financial challenges. Industry average for Trucking Freight/Courier Services in '2023' stood at 5.85. Industry average increased by 0.75 compared to previous year.
• In '2024', TOPP's payables turnover was 23.29, indicating how promptly the company pays its suppliers. The decline from '2023' may indicate some operational or financial challenges. Industry average for Trucking Freight/Courier Services in '2024' stood at 5.20. Industry average declined by 0.65 from previous year.
Overall, TOPP's payables turnover has been volatile but showed a downward trend over the past 3 years.
Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Good Range: Ranges 5-15 depending on industry.