Caterpillar Inc (CAT)
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 | 42,767,000 | 43,365,000 | 42,984,000 | 41,894,000 | 41,350,000 | 39,739,000 | 38,154,000 | 37,060,000 | 35,513,000 | 33,294,000 | 31,596,000 | 29,828,000 | 29,082,000 | 30,415,000 | 32,065,000 | 34,893,000 | 36,630,000 | 37,500,000 | 37,953,000 | 37,434,000 |
| Payables | US$ in thousands | 7,906,000 | 7,827,000 | 8,443,000 | 8,951,000 | 8,689,000 | 8,260,000 | 8,092,000 | 8,361,000 | 8,154,000 | 7,218,000 | 6,921,000 | 6,694,000 | 6,128,000 | 5,193,000 | 5,083,000 | 5,769,000 | 5,957,000 | 6,141,000 | 7,022,000 | 7,198,000 |
| Payables turnover | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | 4.36 | 4.61 | 4.57 | 4.46 | 4.75 | 5.86 | 6.31 | 6.05 | 6.15 | 6.11 | 5.40 | 5.20 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $42,767,000K ÷ $7,906,000K
= 5.41
The payables turnover for Caterpillar Inc. has shown a varied trend over the past eight quarters. The ratio indicates how efficiently the company is managing its accounts payable. A higher payables turnover ratio is generally considered favorable as it suggests that the company is paying its suppliers quickly.
In Q4 2023, the payables turnover ratio decreased slightly to 5.41 compared to the previous quarter, Q3 2023, where it was 5.54. This decrease may indicate a slight slowdown in the company's ability to pay its suppliers in a timely manner.
Over the past year, Caterpillar Inc. has generally maintained a healthy payables turnover ratio above 4.4, signaling that the company is efficiently managing its payables. The highest ratio was seen in Q3 2023 at 5.54, indicating a peak in the company's ability to turn over its payables.
However, it is worth noting that the payables turnover ratio has fluctuated over the quarters, with some quarters showing decreases. This could be due to seasonal changes in the company's business operations or variations in payment terms with suppliers.
Overall, Caterpillar Inc. appears to have a satisfactory payables turnover ratio, suggesting good liquidity and effective management of its accounts payable. Continued monitoring of this ratio will be important to ensure consistent and efficient payment practices.
Peer comparison
Dec 31, 2023