Colgate-Palmolive Company (CL)

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	8,131,000	8,186,000	8,055,000	7,950,000	7,719,000	7,508,000	7,392,000	7,166,000	7,046,000	6,883,000	6,705,000	6,529,000	6,454,000	6,374,000	6,373,000	6,403,000	6,368,000	6,325,000	6,289,000	6,316,000
Payables	US$ in thousands	1,698,000	1,482,000	1,544,000	1,609,000	1,551,000	1,541,000	1,507,000	1,582,000	1,479,000	1,258,000	1,272,000	1,306,000	1,393,000	1,225,000	1,189,000	1,216,000	1,237,000	1,188,000	1,209,000	1,215,000
Payables turnover		4.79	5.52	5.22	4.94	4.98	4.87	4.91	4.53	4.76	5.47	5.27	5.00	4.63	5.20	5.36	5.27	5.15	5.32	5.20	5.20

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,131,000K ÷ $1,698,000K
= 4.79

Colgate-Palmolive Co.'s payables turnover ratio has exhibited some fluctuations over the past eight quarters. The company's payables turnover ratio ranged from a low of 4.53 in Q1 2022 to a high of 5.52 in Q3 2023.

Typically, a higher payables turnover ratio indicates that the company is efficiently managing its accounts payable by paying its suppliers more quickly. This could be beneficial in terms of maintaining strong supplier relationships and potentially negotiating better terms with suppliers.

Colgate-Palmolive Co.'s payables turnover ratio generally remained above 4.5, indicating that the company is effectively managing its accounts payable turnover and is not excessively delaying payments to suppliers, which can strain relationships.

The overall trend suggests that Colgate-Palmolive Co. has been consistent in managing its payables effectively over the past eight quarters, with periodic fluctuations that could be influenced by seasonality, changes in business operations, or industry dynamics. Further analysis and comparison with industry benchmarks would provide a deeper understanding of the company's payables management efficiency.