Cencora Inc. (COR)
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 | 262,297,100 | 253,214,000 | 245,733,700 | 239,100,500 | 233,423,100 | 230,290,700 | 227,945,100 | 221,413,400 | 213,549,800 | 207,045,600 | 198,100,500 | 190,724,100 | 189,132,800 | 184,702,000 | 181,257,200 | 181,124,100 | 176,989,400 | 174,450,800 | 172,262,200 | 170,185,200 |
| Payables | US$ in thousands | 47,743,500 | 45,836,000 | 43,752,100 | 42,734,800 | 41,757,900 | 40,192,900 | 39,305,700 | 38,210,600 | 38,617,700 | 38,010,000 | 36,502,800 | 31,420,400 | 33,449,700 | 31,705,100 | 29,145,100 | 30,720,000 | 29,181,900 | 28,385,100 | 27,807,400 | 28,189,400 |
| Payables turnover | 5.49 | 5.52 | 5.62 | 5.59 | 5.59 | 5.73 | 5.80 | 5.79 | 5.53 | 5.45 | 5.43 | 6.07 | 5.65 | 5.83 | 6.22 | 5.90 | 6.07 | 6.15 | 6.19 | 6.04 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $262,297,100K ÷ $47,743,500K
= 5.49
The payables turnover ratio measures how efficiently a company manages its trade payables. It is calculated by dividing the cost of goods sold by the average accounts payable for the period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently.
Over the past eight quarters, Cencora Inc.'s payables turnover ratio has remained relatively stable, ranging between 5.49 and 5.80. This indicates that the company has been consistently efficient in managing its trade payables. A consistent and high payables turnover ratio suggests that the company is effectively managing its cash flow by paying its suppliers in a timely manner.
However, it is essential to consider the industry norms and compare the company's payables turnover ratio with its peers to gain a deeper understanding of its effectiveness in managing its trade payables. Additionally, changes in the payables turnover ratio over time should be analyzed in conjunction with the company's overall financial performance and cash flow management.
Peer comparison
Dec 31, 2023