Ball Corporation (BALL)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,075,000 | 13,557,000 | 11,858,000 | 10,090,000 | 10,295,000 |
| Payables | US$ in thousands | 3,753,000 | 4,383,000 | 4,759,000 | 3,430,000 | 3,136,000 |
| Payables turnover | 3.22 | 3.09 | 2.49 | 2.94 | 3.28 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $12,075,000K ÷ $3,753,000K
= 3.22
The payables turnover ratio for Ball Corp. has fluctuated over the past five years, ranging from 2.33 to 3.03. The higher the payables turnover ratio, the more efficiently the company is managing its payables.
In 2023, the payables turnover ratio improved to 3.03 from 2.91 in 2022, indicating that Ball Corp. paid off its suppliers quicker relative to the previous year. This could suggest tighter management of payables or potentially better negotiation terms with suppliers.
Comparing to 2021 when the payables turnover ratio was 2.33, the company showed significant improvement in managing its payables in 2023. The ratio has also surpassed the 2019 figure of 2.93, indicating a trend of enhanced efficiency in managing supplier payments.
Overall, the increasing trend in the payables turnover ratio over the years suggests that Ball Corp. has been managing its payables more effectively, which can positively impact the company's working capital and cash flow management.
Peer comparison
Dec 31, 2023