Church & Dwight Company Inc (CHD)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,279,400 | 3,125,600 | 2,926,600 | 2,681,600 | 2,373,700 |
| Payables | US$ in thousands | 630,600 | 666,700 | 663,800 | 588,100 | 473,300 |
| Payables turnover | 5.20 | 4.69 | 4.41 | 4.56 | 5.02 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,279,400K ÷ $630,600K
= 5.20
The payables turnover ratio of Church & Dwight Co., Inc. has shown a generally increasing trend from 2019 to 2023. The ratio increased from 5.02 in 2019 to 5.20 in 2023, indicating that the company is managing its accounts payable more efficiently over the years.
A payables turnover ratio of 5.20 in 2023 means that the company is able to pay off its suppliers approximately 5.20 times during the year. This implies that Church & Dwight Co., Inc. is paying off its suppliers relatively quickly, which could be beneficial in terms of maintaining good relationships with suppliers and negotiating favorable credit terms.
The increasing trend in the payables turnover ratio suggests that the company has been effectively managing its accounts payable, either by negotiating better payment terms with suppliers or by improving its internal processes for paying off debts. This can be a positive sign of financial health and efficiency for Church & Dwight Co., Inc.
However, it is important to note that a very high payables turnover ratio could also indicate aggressive management of payables that may lead to strained supplier relationships or cash flow issues. Therefore, it is essential for the company to strike a balance in managing its payables efficiently while maintaining healthy supplier relationships.
Peer comparison
Dec 31, 2023