Cencora Inc. (COR)
Payables turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 284,048,600 | 274,159,800 | 267,011,600 | 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 |
| Payables | US$ in thousands | 50,942,200 | 49,883,000 | 46,320,800 | 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 |
| Payables turnover | 5.58 | 5.50 | 5.76 | 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 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $284,048,600K ÷ $50,942,200K
= 5.58
The payables turnover ratio for Cencora Inc. has been relatively stable over the past few quarters, ranging between 5.43 and 6.22 times. This indicates that, on average, the company is able to turn over its accounts payables into cash or settle its payables obligations approximately 5 to 6 times per year.
A higher payables turnover ratio generally suggests that the company is managing its accounts payables efficiently by paying its suppliers quickly, which could lead to better relationships with suppliers and potential discounts for early payment. On the other hand, a lower payables turnover ratio may indicate that the company is taking longer to pay its suppliers, potentially straining relationships or missing out on early payment discounts.
Overall, a payables turnover ratio of around 5 to 6 times is considered healthy for most companies, striking a balance between managing cash flow effectively and maintaining good relationships with suppliers. Cencora Inc. appears to be performing adequately in this aspect based on the stability of its payables turnover ratio over the assessed periods.
Peer comparison
Sep 30, 2024