Carlisle Companies Incorporated (CSL)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,952,700 | 3,583,400 | 4,345,500 | 3,855,600 | 3,112,900 |
| Payables | US$ in thousands | 245,500 | 273,500 | 432,400 | 284,500 | 327,300 |
| Payables turnover | 12.03 | 13.10 | 10.05 | 13.55 | 9.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,952,700K ÷ $245,500K
= 12.03
The payables turnover ratio for Carlisle Companies Inc. has shown some fluctuations over the past five years. The company's ability to manage its accounts payable effectively improved significantly from 2019 to 2023, with the ratio increasing from 10.51 to 12.03. This indicates that Carlisle is paying its suppliers more frequently each year, which may reflect more efficient cash management practices or stronger bargaining power with suppliers.
The peak payables turnover ratio of 12.03 in 2023 suggests that on average, Carlisle pays off its accounts payable 12.03 times within a year, indicating a shorter time period between receiving goods or services and settling the liabilities. A higher payables turnover ratio generally indicates that a company is managing its accounts payable efficiently, possibly through negotiated discounts or favorable credit terms.
Overall, the increasing trend in the payables turnover ratio for Carlisle Companies Inc. demonstrates effective management of its accounts payable and efficient utilization of working capital. However, the company should continue to monitor this ratio to ensure sustainable and mutually beneficial supplier relationships while optimizing its cash flow management practices.
Peer comparison
Dec 31, 2023