Avantor Inc (AVTR)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,504,300 | 4,533,000 | 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 | 662,800 | 673,500 | 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 |
| Payables turnover | 6.80 | 6.73 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,504,300K ÷ $662,800K
= 6.80
The payables turnover ratio for Avantor Inc has shown some fluctuations over the quarters analyzed. The ratio ranged between 6.08 and 7.95 during the period from March 31, 2022, to December 31, 2024.
A higher payables turnover ratio typically indicates that the company is efficiently managing its payables by paying suppliers more frequently or quickly. Conversely, a lower ratio may suggest a longer payment period or potential liquidity issues.
Avantor Inc's payables turnover experienced a peak in March 31, 2024, at 7.95, indicating a strong ability to convert payables into cash quickly relative to the other quarters. It then decreased to 6.73 by September 30, 2024, and rose slightly to 6.80 by December 31, 2024.
Overall, the payables turnover for Avantor Inc shows some variability, which could be influenced by factors such as changes in payment terms with suppliers, shifts in purchasing volumes, or alterations in the company's cash management strategies. Further analysis of these fluctuations and trends in conjunction with other financial metrics could provide a more comprehensive understanding of the company's working capital management and financial performance.
Peer comparison
Dec 31, 2024