Avantor Inc (AVTR)

Payables turnover

		Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	4,524,600	4,557,200	4,603,400	4,631,500	4,695,700	4,804,600	4,909,600	4,989,200	5,001,800	4,971,100	4,883,400	4,832,600	4,712,800	4,468,800	4,313,100	4,147,400	4,078,600	4,131,800
Payables	US$ in thousands	657,400	573,400	625,900	655,800	686,600	765,700	758,200	768,900	798,600	818,200	755,100	698,800	755,300	706,400	678,900	625,300	581,000	610,900	560,200	556,300
Payables turnover		6.88	7.95	7.35	7.06	6.84	6.27	6.48	6.49	6.26	6.08	6.47	6.92	6.24	6.33	6.35	6.63	7.02	6.76

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,524,600K ÷ $657,400K
= 6.88

The payables turnover ratio for Avantor Inc has shown variability over the past several quarters. The ratio measures how effectively the company is managing its accounts payable by comparing the purchases made on credit to the average accounts payable during a period.

From the data provided, we observe that the payables turnover ratio has fluctuated between 6.08 and 7.95 over the last 20 quarters. In general, a higher payables turnover ratio indicates that the company is paying its suppliers more frequently or rapidly, which can be viewed positively as it may signify efficient management of working capital.

In the most recent quarter ending June 30, 2024, the payables turnover ratio was 6.88, which indicates that on average, Avantor Inc pays its suppliers approximately 6.88 times a year. This shows a slight decrease from the previous quarter but remains within the range observed over the past two years.

Overall, while the payables turnover ratio for Avantor Inc has been relatively stable around the 6-7 range, further analysis would be needed to understand the specific reasons behind the fluctuations and to assess the company's overall cash management and supplier relationships.