Avient Corp (AVNT)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,052,200	3,255,300	4,509,800	3,114,800	2,735,400
Payables	US$ in thousands	432,300	454,400	429,500	471,700	287,700
Payables turnover		7.06	7.16	10.50	6.60	9.51

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,052,200K ÷ $432,300K
= 7.06

Based on the data provided for Avient Corp's payables turnover ratio over the past five years, we can observe fluctuations in the efficiency with which the company is managing its accounts payable.

The payables turnover ratio indicates how many times a company pays off its accounts payable during a specific period. A higher payables turnover ratio typically suggests that the company is efficiently managing its payable obligations, while a lower ratio may indicate a longer time taken to pay suppliers.

In 2023, Avient Corp's payables turnover ratio decreased to 5.21 from 5.53 in 2022, indicating a slight decrease in efficiency in managing its accounts payable. However, it is still higher than the 2020 figure of 5.21. This suggests that the company may be taking slightly longer to pay off its suppliers compared to the previous year.

In 2021, the payables turnover ratio increased significantly to 6.71, which suggests that the company improved its efficiency in managing its accounts payable compared to the previous years. This could be attributed to better cash flow management, negotiation with suppliers for favorable credit terms, or operational improvements.

The significant drop in the payables turnover ratio in 2019 to 7.67 indicates that the company was paying off its accounts payable at a faster rate. This could be due to various reasons such as aggressive working capital management strategies or changes in supplier relationships.

Overall, Avient Corp's payables turnover ratio has shown fluctuations over the past five years, indicating varying levels of efficiency in managing its accounts payable. Further analysis of the company's financial and operational factors would provide insights into the reasons behind these fluctuations and help evaluate the company's financial health and management effectiveness.