Carrier Global Corp (CARR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,637,000 | 2,671,000 | 3,248,000 | 2,983,000 |
| Payables | US$ in thousands | 2,742,000 | 2,833,000 | 2,334,000 | 1,936,000 |
| Payables turnover | 1.33 | 0.94 | 1.39 | 1.54 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,637,000K ÷ $2,742,000K
= 1.33
The payables turnover ratio for Carrier Global Corp has shown a fluctuating trend over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by evaluating how quickly it pays off its suppliers.
In 2023, the payables turnover ratio was 5.73, which implies that Carrier Global Corp paid off its suppliers approximately 5.73 times during the year. This was an increase from the previous year, suggesting a slight improvement in the company's efficiency in managing its payables.
Comparing the 2023 ratio to that of 2019, there has been a noticeable decline in payables turnover. In 2019, the ratio stood at 7.75, indicating that the company was paying off its suppliers more frequently compared to the latest year.
Overall, although the payables turnover ratio fluctuated over the years, it is essential for Carrier Global Corp to analyze the reasons behind these variations and strive to maintain an optimal balance in managing its accounts payable efficiently.
Peer comparison
Dec 31, 2023