Amphenol Corporation (APH)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,470,600 | 8,594,800 | 7,474,500 | 5,934,800 | 5,609,400 |
| Payables | US$ in thousands | 1,350,900 | 1,309,100 | 1,312,000 | 1,120,700 | 866,800 |
| Payables turnover | 6.27 | 6.57 | 5.70 | 5.30 | 6.47 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,470,600K ÷ $1,350,900K
= 6.27
Amphenol Corp.'s payables turnover has fluctuated over the past five years. The payables turnover ratio measures how efficiently a company pays its suppliers. A higher payables turnover indicates that the company is paying its suppliers more frequently within a given period.
In this case, Amphenol Corp.'s payables turnover was 6.27 times in 2023, a slight decrease from 6.57 in 2022. This indicates that the company paid its suppliers less frequently in 2023 compared to the previous year. However, the payables turnover ratio in 2023 is still higher than in 2021 and 2020, suggesting an improvement in the company's ability to manage its payables.
Overall, while the slight decrease in the payables turnover ratio in 2023 may raise some concerns, the company's historical performance shows a relatively efficient management of its payables compared to previous years.