Adient PLC (ADNT)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 14,362,000 | 13,314,000 | 12,854,000 | 12,078,000 | 15,725,000 |
| Payables | US$ in thousands | 2,526,000 | 2,478,000 | 2,130,000 | 2,179,000 | 2,709,000 |
| Payables turnover | 5.69 | 5.37 | 6.03 | 5.54 | 5.80 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $14,362,000K ÷ $2,526,000K
= 5.69
The payables turnover ratio measures how efficiently a company manages its accounts payable. Adient plc's payables turnover ratio has fluctuated over the past five years, with values ranging from 5.37 to 6.03.
In 2023, the payables turnover ratio increased to 5.69 from 5.37 in the previous year, indicating that Adient plc was able to pay off its suppliers more frequently during the year. This may suggest improved liquidity and better management of trade credit. However, it's important to note that a higher payables turnover ratio could also indicate renegotiated payment terms with suppliers that may prompt a need for more thorough examination.
Overall, the upward trend in the payables turnover ratio over the past five years suggests that Adient plc has been efficiently managing its accounts payable, which may contribute to a positive perception of the company's financial health and operational efficiency.
Peer comparison
Sep 30, 2023