Autoliv Inc (ALV)

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	9,154,000	8,853,000	8,626,000	8,176,000	7,883,000	7,708,000	7,334,000	7,219,000	7,162,000	7,527,800	7,610,400	6,992,500	6,708,500	6,399,600	6,417,200	7,155,000	7,443,400	7,394,700	7,385,700	7,389,300
Payables	US$ in thousands	1,978,000	1,858,000	1,844,000	1,683,000	1,693,000	1,503,000	1,303,000	1,385,000	1,129,000	1,076,000	1,125,000	1,215,000	1,227,000	912,400	615,700	862,500	941,000	890,400	946,900	947,200
Payables turnover		4.63	4.76	4.68	4.86	4.66	5.13	5.63	5.21	6.34	7.00	6.76	5.76	5.47	7.01	10.42	8.30	7.91	8.30	7.80	7.80

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $9,154,000K ÷ $1,978,000K
= 4.63

The payables turnover ratio for Autoliv Inc. has shown some fluctuations over the last eight quarters. The ratio has ranged from a low of 4.38 in Q4 2023 to a high of 5.29 in Q2 2022.

A payables turnover ratio measures how efficiently a company manages its payments to suppliers. A higher ratio indicates that a company is paying its suppliers more frequently within a given period.

The downward trend from Q2 2022 to Q4 2023 suggests that Autoliv Inc. might be taking longer to pay its suppliers compared to the previous quarters. This could be due to various reasons such as changes in payment terms, supplier relationships, or changes in the company's working capital management.

It is important for Autoliv Inc. to monitor and manage its payables turnover efficiently to maintain good relationships with suppliers and optimize its working capital. Analyzing the underlying reasons for the fluctuations in the payables turnover ratio can provide valuable insights for the company's financial management and operational efficiency.