Avient Corp (AVNT)

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	3,052,200	3,190,500	3,234,500	3,635,300	4,012,500	4,321,900	4,670,900	4,634,600	4,509,800	4,307,200	4,063,500	3,498,100	3,114,700	2,162,800	1,918,200	2,176,200	2,348,800	2,331,900	2,482,200	2,487,400
Payables	US$ in thousands	432,300	389,500	428,700	448,100	454,400	448,700	634,000	642,300	429,500	557,700	574,600	529,600	471,700	403,600	262,800	329,600	287,700	289,300	398,000	407,200
Payables turnover		7.06	8.19	7.54	8.11	8.83	9.63	7.37	7.22	10.50	7.72	7.07	6.61	6.60	5.36	7.30	6.60	8.16	8.06	6.24	6.11

December 31, 2023 calculation

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

Avient Corp's payables turnover ratio fluctuated over the past eight quarters, ranging from a low of 3.96 in Q2 2023 to a high of 7.97 in Q3 2022. The payables turnover ratio indicates how efficiently the company is managing its accounts payable. A higher turnover ratio suggests that the company is paying off its suppliers more quickly.

The decreasing trend in the payables turnover ratio from Q3 2022 to Q2 2023 may indicate that Avient Corp is taking longer to pay its suppliers. This could be a strategic move to improve cash flow or negotiate better payment terms with suppliers.

However, the ratio increased again in Q4 2023, which could suggest a shift towards more efficient management of accounts payable. Overall, further analysis of the company's financial performance and cash flow management practices is recommended to fully understand the implications of these changes in the payables turnover ratio.