CF Industries Holdings Inc (CF)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,086,000 | 5,325,000 | 4,151,000 | 3,323,000 | 3,416,000 |
| Payables | US$ in thousands | 114,000 | 63,000 | 110,000 | 85,000 | 78,000 |
| Payables turnover | 35.84 | 84.52 | 37.74 | 39.09 | 43.79 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,086,000K ÷ $114,000K
= 35.84
The payables turnover ratio for CF Industries Holdings Inc has exhibited variability over the past five years. In 2023, the payables turnover ratio was 35.84, a decrease from the previous year's figure of 84.52 in 2022. This significant decline may indicate a decrease in the speed at which the company is paying its suppliers, suggesting a longer payment period compared to the previous year.
The 2023 ratio of 35.84 is also notably lower than the ratios in 2020, 2021, and 2019, indicating a less efficient management of payables in the most recent year. However, it is important to note that the payables turnover ratio can be influenced by various factors such as industry norms, supplier relationships, and company policies.
Further analysis of the underlying reasons for the decrease in the payables turnover ratio in 2023 would be necessary to understand the company's payment practices and liquidity management. An increasing payables turnover ratio typically suggests more effective management of trade payables, highlighting a company's ability to efficiently settle its obligations with suppliers.
Peer comparison
Dec 31, 2023