Belden Inc (BDC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,557,120 | 1,690,200 | 1,529,420 | 1,176,570 | 1,337,770 |
| Payables | US$ in thousands | 343,215 | 350,058 | 377,765 | 244,120 | 268,466 |
| Payables turnover | 4.54 | 4.83 | 4.05 | 4.82 | 4.98 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,557,120K ÷ $343,215K
= 4.54
Belden Inc's payables turnover has fluctuated over the past five years, ranging from a low of 4.04 in 2021 to a high of 4.98 in 2019. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by measuring how many times within a year the company pays off its suppliers.
The trend of the payables turnover ratio suggests that Belden Inc has been effective in managing its payables in recent years, with a general consistency in paying off its suppliers. However, the slight decrease observed in 2023 compared to the previous year may indicate a slight decrease in efficiency in managing its accounts payable. This could be a point of concern for the company, as a lower payables turnover ratio may indicate that the company is taking longer to pay off its suppliers, potentially leading to strained supplier relationships or missed early payment discounts.
Overall, it is important for Belden Inc to continue monitoring its payables turnover ratio and strive to maintain or improve efficiency in managing its accounts payable to ensure healthy supplier relationships and optimize cash flow management.
Peer comparison
Dec 31, 2023