Cencora Inc. (COR)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 253,214,000 | 230,291,000 | 207,046,000 | 184,702,000 | 174,451,000 |
| Payables | US$ in thousands | 45,836,000 | 40,192,900 | 38,010,000 | 31,705,100 | 28,385,100 |
| Payables turnover | 5.52 | 5.73 | 5.45 | 5.83 | 6.15 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $253,214,000K ÷ $45,836,000K
= 5.52
The payables turnover for Cencora Inc. has been relatively consistent over the past three years, with values of 5.73 in 2022, 5.45 in 2021, and 5.52 in 2023. This indicates that the company is efficient in managing its accounts payable. The payables turnover measures how many times a company pays its average accounts payable balance during a period, and a higher turnover ratio suggests that the company is paying off its suppliers more frequently.
The declining trend from 5.73 in 2022 to 5.45 in 2021 may indicate that the company took longer to pay its suppliers in 2021 compared to 2022. However, the slight increase to 5.52 in 2023 shows an improvement in the efficiency of payables management compared to the previous year.
It's important to note that a high payables turnover ratio could also indicate that the company is paying off its suppliers too quickly, potentially risking strained relationships or missing out on potential early payment discounts. Therefore, while a high payables turnover ratio demonstrates efficiency, it's important for Cencora Inc. to strike a balance and optimize its payables management strategy.
Peer comparison
Sep 30, 2023