Axalta Coating Systems Ltd (AXTA)
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 | 4,679,000 | 4,511,200 | 4,473,800 | 4,445,800 | 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 |
| Payables | US$ in thousands | 659,000 | 708,000 | 715,000 | 721,000 | 725,000 | 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 |
| Payables turnover | 7.10 | 6.37 | 6.26 | 6.17 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,679,000K ÷ $659,000K
= 7.10
The payables turnover ratio for Axalta Coating Systems Ltd has shown some fluctuations over the past few years. The ratio measures how quickly the company is able to pay off its suppliers.
From March 31, 2020, to December 31, 2024, the payables turnover ratio ranged between 5.55 and 10.10, with some variations from quarter to quarter. Generally, a higher turnover ratio indicates that the company is managing its payables more efficiently by paying off suppliers more quickly.
It is observed that the payables turnover ratio peaked at 10.10 on June 30, 2020, but then decreased gradually and fluctuated around the range of 5.55 to 7.10 for the subsequent periods. This may suggest that the company's payment practices became less efficient after June 2020.
Overall, while the payables turnover ratio provides insight into how effectively the company manages its short-term obligations to suppliers, additional analysis of the company's payment terms and industry benchmarks would be required to provide a more in-depth assessment of Axalta Coating Systems Ltd's payables management.
Peer comparison
Dec 31, 2024