Crown Holdings Inc (CCK)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,362,000 | 12,303,000 | 12,237,000 | 11,007,000 | 9,839,000 |
| Payables | US$ in thousands | 2,459,000 | 2,773,000 | 2,901,000 | 2,141,000 | 2,646,000 |
| Payables turnover | 4.62 | 4.44 | 4.22 | 5.14 | 3.72 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $11,362,000K ÷ $2,459,000K
= 4.62
Crown Holdings, Inc.'s payables turnover ratio has shown a fluctuating trend over the past five years. The ratio increased from 3.53 in 2019 to 3.88 in 2023, indicating that the company is managing its accounts payable more efficiently in recent years. This improvement suggests that Crown Holdings, Inc. is paying its suppliers more frequently relative to the quantity of goods purchased on credit.
A higher payables turnover ratio generally indicates a shorter period it takes for a company to pay off its suppliers. This could signify better liquidity management and potentially stronger supplier relationships. However, it is essential to consider industry norms and company-specific factors when interpreting this ratio. Overall, the increasing trend in Crown Holdings, Inc.'s payables turnover ratio reflects positive working capital management practices and efficiency in managing its accounts payable.
Peer comparison
Dec 31, 2023