Amphenol Corporation (APH)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,083,000 | 8,470,600 | 8,594,800 | 7,474,500 | 5,934,800 |
| Payables | US$ in thousands | 1,819,400 | 1,350,900 | 1,309,100 | 1,312,000 | 1,120,700 |
| Payables turnover | 5.54 | 6.27 | 6.57 | 5.70 | 5.30 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,083,000K ÷ $1,819,400K
= 5.54
The payables turnover for Amphenol Corporation has shown an upward trend over the past five years, increasing from 5.30 in 2020 to 5.70 in 2021, further rising to 6.57 in 2022, before slightly declining to 6.27 in 2023, and then decreasing to 5.54 in 2024.
A higher payables turnover ratio signifies that the company is paying its suppliers more quickly, which can be indicative of efficient working capital management and strong supplier relationships. However, the decrease in the payables turnover ratio in 2024 may warrant further investigation to understand the factors influencing this change and its potential implications for the company's liquidity and financial health.