Barnes Group Inc (B)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,425,610 | 1,249,740 | 1,155,180 | 1,061,200 | 1,317,190 |
| Payables | US$ in thousands | 164,264 | 145,060 | 131,076 | 112,428 | 118,509 |
| Payables turnover | 8.68 | 8.62 | 8.81 | 9.44 | 11.11 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,425,610K ÷ $164,264K
= 8.68
The payables turnover ratio for Barnes Group Inc. has been relatively stable over the past five years, ranging from 5.79 to 7.97. This ratio measures how efficiently the company is managing its trade payables by indicating how many times during a year the company pays off its suppliers.
The decrease in payables turnover in 2022 compared to 2021 could indicate a slightly slower payment of suppliers during that period. However, the ratio improved in 2023, suggesting a potential recovery in payables management efficiency.
Overall, a payables turnover ratio above 1 signifies that Barnes Group Inc. is effectively utilizing its trade credit terms to manage its cash flow and working capital. However, the company should continue to monitor and potentially optimize its payables management to ensure healthy supplier relationships and efficient use of resources.
Peer comparison
Dec 31, 2023