Berry Global Group Inc (BERY)
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 | 11,135,000 | 11,291,000 | 11,590,000 | 12,018,000 | 12,770,000 | 13,265,000 | 13,533,000 | 13,475,000 | 13,078,000 | 12,567,000 | 11,547,000 | 10,781,000 | 10,439,000 | 10,226,000 | 10,395,000 | 9,380,000 | 8,263,000 | 7,259,000 | 6,453,000 | 6,592,000 |
| Payables | US$ in thousands | 1,131,000 | 1,528,000 | 1,159,000 | 1,350,000 | 1,208,000 | 1,795,000 | 1,518,000 | 1,651,000 | 1,582,000 | 2,041,000 | 1,556,000 | 1,412,000 | 1,193,000 | 1,115,000 | 981,000 | 1,231,000 | 1,062,000 | 1,159,000 | 584,000 | 657,000 |
| Payables turnover | 9.85 | 7.39 | 10.00 | 8.90 | 10.57 | 7.39 | 8.92 | 8.16 | 8.27 | 6.16 | 7.42 | 7.64 | 8.75 | 9.17 | 10.60 | 7.62 | 7.78 | 6.26 | 11.05 | 10.03 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $11,135,000K ÷ $1,131,000K
= 9.85
The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the company's purchases to its average accounts payable during a certain period. Berry Global Group Inc has shown fluctuating payables turnover ratios over the past few quarters, ranging from a low of 6.16 in June 2021 to a high of 11.05 in March 2019.
A high payables turnover ratio, such as the peak of 11.05 in March 2019, indicates that the company is paying off its suppliers quickly, which may imply favorable payment terms negotiated with suppliers or efficient working capital management. On the other hand, a low payables turnover ratio, like the low of 6.16 in June 2021, may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships or signal cash flow issues.
Overall, the payables turnover ratio for Berry Global Group Inc has generally been above 7 in recent quarters, indicating that the company is managing its accounts payable efficiently. However, the fluctuations in the ratio over time may warrant further investigation into the company's vendor management practices and cash flow trends.
Peer comparison
Dec 31, 2023