Carrier Global Corp (CARR)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 20,654,000 | 3,637,000 | 2,671,000 | 3,248,000 | 2,983,000 |
| Payables | US$ in thousands | 2,458,000 | 2,483,000 | 2,833,000 | 2,334,000 | 1,936,000 |
| Payables turnover | 8.40 | 1.46 | 0.94 | 1.39 | 1.54 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $20,654,000K ÷ $2,458,000K
= 8.40
The payables turnover ratio for Carrier Global Corp has fluctuated over the past five years, indicating variations in the efficiency of the company's accounts payable management.
In December 2020, the payables turnover ratio stood at 1.54 times, showing that on average, the company paid its suppliers approximately 1.54 times during the year. This ratio decreased slightly to 1.39 times by December 2021, suggesting a potential slowdown in payments to suppliers during that period.
The ratio experienced a more significant decline to 0.94 times by December 2022, indicating a potential extension in the payment period to suppliers or a buildup of accounts payables. However, the company seemed to have improved its payables management by December 2023, with the ratio increasing to 1.46 times.
The most notable change occurred by December 2024, where the payables turnover ratio spiked to 8.40 times. Such a high ratio could suggest a significant improvement in managing accounts payables or a shorter payment period to suppliers during that year.
Overall, the trend in Carrier Global Corp's payables turnover ratio highlights fluctuations in the efficiency of managing accounts payables, demonstrating the company's ability to adapt and optimize its payment practices over the years.
Peer comparison
Dec 31, 2024