Church & Dwight Company Inc (CHD)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | 3,317,000 | 3,289,600 | 3,271,700 | 3,287,900 | 3,279,400 | 3,266,200 | 3,224,200 | 3,188,700 | 3,125,600 | 3,079,600 | 3,044,200 | 2,983,300 | 2,926,600 | 2,877,000 | 2,820,600 | 2,736,400 | 2,681,600 | 2,563,900 | 2,469,800 | 2,433,000 |
| Payables | US$ in thousands | 705,100 | 705,900 | 673,200 | 647,400 | 630,600 | 691,800 | 677,700 | 651,500 | 666,700 | 655,600 | 667,200 | 655,000 | 663,800 | 617,500 | 566,800 | 547,300 | 588,100 | 580,800 | 516,700 | 460,100 |
| Payables turnover | 4.70 | 4.66 | 4.86 | 5.08 | 5.20 | 4.72 | 4.76 | 4.89 | 4.69 | 4.70 | 4.56 | 4.55 | 4.41 | 4.66 | 4.98 | 5.00 | 4.56 | 4.41 | 4.78 | 5.29 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,317,000K ÷ $705,100K
= 4.70
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its average accounts payable balance in a specific period.
Analyzing Church & Dwight Company Inc's payables turnover ratio from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio ranging from 4.41 to 5.29 times. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently within a given period.
The average payables turnover ratio for this period stands at around 4.77 times. This consistency in the ratio indicates that Church & Dwight Company Inc has maintained a relatively stable payables management strategy over the evaluated period.
It is essential to closely monitor the payables turnover ratio as it can provide insights into the company's liquidity, efficiency in managing working capital, and relationships with suppliers. Overall, Church & Dwight Company Inc's payables turnover ratio demonstrates the company's ability to efficiently manage its accounts payable and is in line with industry norms.
Peer comparison
Dec 31, 2024