Belden Inc (BDC)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,538,760 | 1,557,120 | 1,690,200 | 1,529,420 | 1,176,570 |
| Payables | US$ in thousands | 315,724 | 343,215 | 350,058 | 377,765 | 244,120 |
| Payables turnover | 4.87 | 4.54 | 4.83 | 4.05 | 4.82 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,538,760K ÷ $315,724K
= 4.87
Based on the data provided for Belden Inc's payables turnover, we can observe fluctuations in the ratio over the five-year period from 2020 to 2024. The payables turnover ratio measures how efficiently a company pays its suppliers.
1. In 2020, the payables turnover ratio was 4.82, indicating that Belden Inc paid its suppliers approximately 4.82 times during that year.
2. The ratio decreased to 4.05 in 2021, which suggests a decrease in the frequency of payments to suppliers. This could be due to various factors such as changes in payment terms or inventory management strategies.
3. By 2022, the payables turnover ratio slightly increased to 4.83, indicating a more efficient payment cycle compared to the previous year.
4. In 2023, the ratio decreased slightly to 4.54, indicating a potential moderate slowdown in the payment cycle compared to the previous year.
5. Finally, by 2024, the payables turnover ratio increased to 4.87, suggesting that Belden Inc improved its payment efficiency once again.
Overall, the fluctuations in the payables turnover ratio over the five-year period may indicate changes in Belden Inc's liquidity management, supplier relationships, or operational efficiency in handling payables. It is important for the company to monitor this ratio consistently to ensure effective management of its accounts payable and cash flow.
Peer comparison
Dec 31, 2024