Adient PLC (ADNT)

Payables turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	14,308,000	14,362,000	14,250,000	13,809,000	13,475,000	13,314,000	12,681,000	12,461,000	12,654,000	12,854,000	13,472,000	12,159,000	11,912,000	12,078,000	12,434,000	14,663,000	15,420,000	15,725,000	15,986,000	16,227,000
Payables	US$ in thousands	2,422,000	2,526,000	2,646,000	2,677,000	2,422,000	2,478,000	2,361,000	2,468,000	2,284,000	2,130,000	2,094,000	2,378,000	2,228,000	2,179,000	1,465,000	2,203,000	2,511,000	2,709,000	2,751,000	2,880,000
Payables turnover		5.91	5.69	5.39	5.16	5.56	5.37	5.37	5.05	5.54	6.03	6.43	5.11	5.35	5.54	8.49	6.66	6.14	5.80	5.81	5.63

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $14,308,000K ÷ $2,422,000K
= 5.91

The payables turnover ratio for Adient plc has been relatively stable over the past eight quarters, ranging from 5.05 to 5.91. This ratio measures how efficiently the company is managing its trade payables by indicating the number of times a company pays off its average accounts payable balance during a period.

The trend indicates that Adient plc has been effectively managing its payables over the given period. A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, which could be beneficial in terms of maintaining good relationships with suppliers and potentially negotiating favorable credit terms.

However, it is essential to consider industry benchmarks and company-specific factors when interpreting this ratio further. Overall, the consistency in Adient plc's payables turnover ratio reflects a stable approach to managing its trade payables.