Corteva Inc (CTVA)
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 | 13,841,000 | 13,914,000 | 14,168,000 | 14,331,000 | 14,312,000 | 14,089,000 | 13,785,000 | 13,454,000 | 13,152,000 | 12,046,000 | 11,692,000 | 11,653,000 | 11,576,000 | 11,487,000 | 11,572,000 | 11,580,000 | 13,901,000 | |||
| Payables | US$ in thousands | 4,280,000 | 3,678,000 | 3,379,000 | 3,957,000 | 4,895,000 | 4,140,000 | 3,567,000 | 3,685,000 | 4,126,000 | 3,512,000 | 3,070,000 | 3,098,000 | 3,615,000 | 2,994,000 | 2,891,000 | 3,021,000 | 3,702,000 | 3,014,000 | 3,139,000 | 3,120,000 |
| Payables turnover | 3.23 | 3.78 | 4.19 | 3.62 | 2.92 | 3.40 | 3.86 | 3.65 | 3.19 | 3.43 | 3.81 | 3.76 | 3.20 | 3.84 | 4.00 | 3.83 | 3.75 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $13,841,000K ÷ $4,280,000K
= 3.23
The payables turnover ratio measures how efficiently a company manages its accounts payables by comparing the cost of goods sold to the average accounts payable balance during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a sign of good financial health.
Analyzing the payables turnover data of Corteva Inc from Q1 2022 to Q4 2023, we observe fluctuations in the ratio over the period. In Q1 2022, the payables turnover ratio was 2.58, and it increased to 2.76 in Q2 2022, suggesting a more efficient management of accounts payables during that period. Subsequently, the ratio decreased to 2.45 in Q3 2022 before rising to 2.13 in Q4 2022, indicating a decrease in efficiency in managing payables.
In 2023, Corteva Inc demonstrated an improvement in payables turnover, as the ratio increased consistently from 2.65 in Q1 to 3.05 in Q2. This suggests that the company was more efficient in paying its suppliers during this period. However, in Q3 2023, there was a slight decrease in the payables turnover ratio to 2.74, which was followed by a further decline to 2.32 in Q4 2023.
Overall, the trend in Corteva Inc's payables turnover ratio has been somewhat volatile over the period analyzed. It is important for the company to closely monitor and manage its payables turnover to ensure a balanced approach to supplier payments, maintaining good relationships with suppliers while also optimizing cash flow and working capital efficiency.
Peer comparison
Dec 31, 2023