Dana Inc (DAN)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,273,000 | 10,117,000 | 8,610,000 | 7,026,000 | 8,334,000 |
| Payables | US$ in thousands | 1,756,000 | 1,838,000 | 1,571,000 | 1,331,000 | 1,255,000 |
| Payables turnover | 5.85 | 5.50 | 5.48 | 5.28 | 6.64 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,273,000K ÷ $1,756,000K
= 5.85
The payables turnover ratio for Dana Inc has been fluctuating over the past five years. In 2023, the company's payables turnover ratio was 5.50, which indicates that the company paid its suppliers approximately 5.50 times during the year. This is an improvement compared to the previous year, where the ratio was 5.11.
A higher payables turnover ratio suggests that the company is managing its accounts payable more efficiently by paying off its suppliers more frequently. This can be a positive sign as it may reflect good relationships with suppliers and the ability to negotiate favorable payment terms.
However, it's important to note that the payables turnover ratio should be analyzed in conjunction with other financial ratios and metrics to get a more comprehensive understanding of the company's financial performance and management of working capital.
Peer comparison
Dec 31, 2023