Carrier Global Corp (CARR)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,637,000 | 3,297,000 | 3,046,000 | 2,840,000 | 2,671,000 | 2,816,000 | 2,920,000 | 3,112,000 | 3,246,000 | 3,232,000 | 3,154,000 | 2,973,000 | 2,982,000 | |||
| Payables | US$ in thousands | 2,742,000 | 2,887,000 | 2,956,000 | 2,926,000 | 2,833,000 | 2,817,000 | 2,403,000 | 2,519,000 | 2,334,000 | 2,158,000 | 2,362,000 | 2,175,000 | 1,936,000 | 2,019,000 | 1,765,000 | 1,776,000 |
| Payables turnover | 1.33 | 1.14 | 1.03 | 0.97 | 0.94 | 1.00 | 1.22 | 1.24 | 1.39 | 1.50 | 1.34 | 1.37 | 1.54 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,637,000K ÷ $2,742,000K
= 1.33
The payables turnover ratio for Carrier Global Corp has shown a consistent trend over the past eight quarters. The ratio has ranged between 5.28 and 6.09 during this period, indicating that the company is able to efficiently manage its accounts payable.
Generally, a higher payables turnover ratio suggests that the company is paying its suppliers more frequently within a given period, which could signify strong cash management practices or good relationships with vendors.
During Q2 2022, the payables turnover ratio peaked at 6.09, reflecting a temporary acceleration in payment to suppliers. However, this ratio then stabilized between 5.28 and 5.51 during the following quarters.
Overall, Carrier Global Corp's consistent payables turnover ratios suggest that the company has been effectively managing its accounts payable and maintaining healthy relationships with its suppliers over the analyzed period.
Peer comparison
Dec 31, 2023