Axalta Coating Systems Ltd (AXTA)
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 | 4,432,700 | 4,599,600 | 4,581,600 | 4,548,800 | 4,475,200 | 4,406,800 | 4,274,000 | 4,149,600 | 3,982,800 | 3,575,900 | 3,475,500 | 3,184,400 | 3,187,200 | 3,220,200 | 3,352,100 | 3,637,400 | 3,751,800 | 3,818,400 | 4,048,800 | 4,173,800 |
| Payables | US$ in thousands | 724,900 | 709,900 | 702,300 | 703,500 | 733,500 | 746,600 | 746,800 | 748,000 | 657,400 | 622,500 | 597,500 | 565,000 | 564,400 | 482,900 | 331,900 | 489,800 | 483,700 | 495,300 | 508,400 | 530,900 |
| Payables turnover | 6.11 | 6.48 | 6.52 | 6.47 | 6.10 | 5.90 | 5.72 | 5.55 | 6.06 | 5.74 | 5.82 | 5.64 | 5.65 | 6.67 | 10.10 | 7.43 | 7.76 | 7.71 | 7.96 | 7.86 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,432,700K ÷ $724,900K
= 6.11
Axalta Coating Systems Ltd's payables turnover has been relatively stable and increasing gradually over the past eight quarters. The payables turnover ratio measures how efficiently a company manages its accounts payable, indicating how many times a company pays off its suppliers during a specific period.
The trend of increasing payables turnover from Q1 2022 (4.20) to Q4 2023 (4.92) suggests that the company has been improving its efficiency in paying off suppliers. This could be due to better negotiation terms with suppliers, improved working capital management, or other operational efficiencies.
Overall, the increasing trend in payables turnover is a positive sign, indicating that Axalta Coating Systems Ltd is managing its payables effectively and possibly taking advantage of favorable payment terms from suppliers. However, it is essential to consider industry benchmarks and compare this ratio with competitors to get a better understanding of the company's performance in managing its payables.
Peer comparison
Dec 31, 2023