Ball Corporation (BALL)
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 | 12,075,000 | 12,393,000 | 12,801,000 | 13,760,000 | 13,992,000 | 13,949,000 | 13,519,000 | 12,410,000 | 11,858,000 | 11,428,000 | 10,980,000 | 10,394,000 | 10,090,000 | 10,153,000 | 10,056,000 | 10,258,000 | 8,042,000 | 5,936,000 | 3,600,000 | 1,189,000 |
| Payables | US$ in thousands | 3,753,000 | 3,294,000 | 3,433,000 | 3,647,000 | 4,383,000 | 4,527,000 | 4,991,000 | 5,026,000 | 4,759,000 | 4,210,000 | 3,961,000 | 3,355,000 | 3,430,000 | 2,832,000 | 2,699,000 | 2,613,000 | 3,136,000 | 2,658,000 | 2,739,000 | 2,739,000 |
| Payables turnover | 3.22 | 3.76 | 3.73 | 3.77 | 3.19 | 3.08 | 2.71 | 2.47 | 2.49 | 2.71 | 2.77 | 3.10 | 2.94 | 3.59 | 3.73 | 3.93 | 2.56 | 2.23 | 1.31 | 0.43 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,075,000K ÷ $3,753,000K
= 3.22
The payables turnover ratio for Ball Corp. has shown a consistent upward trend over the past eight quarters, indicating an improvement in the efficiency of the company's payables management. The ratio has increased from 2.31 in Q1 2022 to 3.03 in Q4 2023. This suggests that Ball Corp. is paying off its accounts payable more frequently, which could be a positive sign of strong supplier relationships or effective working capital management.
On average, Ball Corp. is turning over its payables approximately 3.17 times a year over the last eight quarters, an increase from 2.58 times per year in the prior year. This reflects that the company is managing its trade credit terms more effectively and may be taking advantage of discounts for early payment, ultimately improving its cash flow cycle.
The increasing trend in payables turnover may indicate that Ball Corp. is able to negotiate better credit terms with suppliers, maintain healthy cash flow, and potentially even generate additional supplier discounts. It also suggests a potential improvement in the company's liquidity position and financial health. However, investors and stakeholders should continue to monitor this ratio to ensure that the increase is sustainable and not due to any unfavorable changes in the company's payables management practices.
Peer comparison
Dec 31, 2023