Allegion PLC (ALLE)

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	2,970,400	2,937,500	2,961,000	2,856,600	2,698,200	2,583,200	2,411,000	2,386,900	2,346,400	1,785,800	1,777,300	1,670,600	1,754,800	2,305,100	2,318,000	2,412,100	2,312,300	2,284,900	2,277,700	2,255,300
Payables	US$ in thousands	259,200	245,700	265,200	277,800	280,700	266,400	278,400	258,400	259,100	212,400	233,000	209,800	220,400	191,100	195,500	198,700	221,000	208,800	206,500	198,300
Payables turnover		11.46	11.96	11.17	10.28	9.61	9.70	8.66	9.24	9.06	8.41	7.63	7.96	7.96	12.06	11.86	12.14	10.46	10.94	11.03	11.37

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,970,400K ÷ $259,200K
= 11.46

Allegion plc's payables turnover ratio has shown some fluctuations over the past eight quarters. The ratio ranged from 6.22 to 8.42, indicating the number of times on average the company pays its suppliers within a given period. A higher payables turnover ratio suggests that Allegion is managing its accounts payable efficiently by paying off its suppliers more frequently.

In Q3 2023, the payables turnover ratio reached its peak at 8.42, indicating that Allegion was paying off its suppliers at a faster rate compared to the previous quarters. This could imply improved liquidity management or possibly negotiation of favorable credit terms with suppliers.

However, in Q1 2023, the payables turnover ratio decreased to 7.37, suggesting a slower rate of paying suppliers compared to the previous quarter. This could be due to various factors such as changes in payment terms or a temporary increase in accounts payable.

Overall, the trend in Allegion plc's payables turnover ratio indicates a relatively stable performance in managing its accounts payable, with some fluctuations observed over the quarters. Further analysis and comparison with industry benchmarks could provide additional insights into the company's supplier relationship management and working capital efficiency.