Dupont De Nemours Inc (DD)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	10,824,000	10,613,000	13,459,000	18,728,000	18,087,000
Payables	US$ in thousands	1,675,000	2,103,000	2,102,000	2,222,000	2,934,000
Payables turnover		6.46	5.05	6.40	8.43	6.16

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $10,824,000K ÷ $1,675,000K
= 6.46

The payables turnover ratio for DuPont de Nemours Inc has shown some fluctuations over the past five years. The ratio was 4.68 in 2023, reflecting an increase from the previous year. This suggests that the company is taking a shorter time to pay its suppliers compared to the previous year. However, it is important to note that a high payables turnover ratio could also indicate aggressive payment policies that may strain supplier relationships.

In 2022, the payables turnover ratio was 4.00, showing a decline from the previous year. This could indicate that the company took longer to pay its suppliers in 2022 compared to 2021. A lower payables turnover ratio may indicate inefficiencies in managing accounts payable or potential liquidity issues.

In 2021, the payables turnover ratio was 4.14, which was slightly lower compared to 2020. This could suggest that the company took slightly longer to pay its suppliers in 2021. A consistent or slightly decreasing payables turnover ratio could indicate stable payment practices.

In 2020, the payables turnover ratio was 4.56, showing a decrease from the previous year. This indicates that the company took longer to pay its suppliers in 2020 compared to 2019. A decreasing payables turnover ratio could raise concerns about the company's liquidity position or its ability to manage accounts payable effectively.

In 2019, the payables turnover ratio was 4.79, reflecting a relatively high turnover compared to the subsequent years. A high payables turnover ratio indicates that the company is efficiently managing its accounts payable by paying suppliers in a timely manner.

Overall, analyzing DuPont de Nemours Inc's payables turnover ratios over the past five years provides insights into the company's payment practices and liquidity management strategies. It is essential for stakeholders to consider these ratios in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial performance and management of its payables.