Adient PLC (ADNT)

Payables turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	13,760,000	13,922,000	14,166,000	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
Payables	US$ in thousands	2,552,000	2,462,000	2,512,000	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
Payables turnover		5.39	5.65	5.64	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

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $13,760,000K ÷ $2,552,000K
= 5.39

The payables turnover ratio for Adient PLC has been relatively stable over the past few quarters, ranging between 5.05 and 6.43. This ratio indicates how efficiently the company is managing its trade payables by measuring how many times a company pays off its average accounts payable balance during a period.

A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which can indicate strong liquidity and efficient working capital management. Adient PLC's payables turnover has generally been within a reasonable range, reflecting good payment practices.

It is important to note that the payables turnover ratio should be assessed in conjunction with other financial ratios and qualitative factors to gain a comprehensive understanding of the company's financial health and operational efficiency.