Aptiv PLC (APTV)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 19,193,000 | 16,908,000 | 15,056,000 | 11,126,000 | 11,711,000 |
| Payables | US$ in thousands | 3,151,000 | 3,150,000 | 2,953,000 | 2,571,000 | 2,463,000 |
| Payables turnover | 6.09 | 5.37 | 5.10 | 4.33 | 4.75 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $19,193,000K ÷ $3,151,000K
= 6.09
The payables turnover ratio of Aptiv PLC has shown a fluctuating trend over the past five years. The ratio increased from 4.75 in 2019 to 4.33 in 2020, indicating a more efficient management of payables in the latter year. Subsequently, the ratio then rose to 4.46 in 2021 and further to 4.72 in 2022, demonstrating an improvement in the management of payables in those years.
However, the most significant increase was seen in 2023 when the payables turnover ratio reached 5.27, which indicates that Aptiv PLC was able to manage its payables more effectively compared to the previous years. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently within the year, implying efficient cash management or potentially advantageous credit terms negotiated with suppliers. Overall, the increasing trend in the payables turnover ratio reflects a positive development in Aptiv PLC's ability to manage its payables effectively over the years.
Peer comparison
Dec 31, 2023