Deere & Company (DE)
Payables turnover
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,175,000 | 4,683,000 | 3,569,000 | 27,945,000 | 31,164,000 |
| Payables | US$ in thousands | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
October 29, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,175,000K ÷ $—K
= —
The payables turnover ratio measures how efficiently a company is managing its payables by comparing the cost of goods sold to the average accounts payable balance. A higher turnover ratio indicates that the company is paying its suppliers more frequently.
Looking at the historical data for Deere & Co.'s payables turnover, we can see that the ratio has fluctuated over the past five years. In the most recent period, the payables turnover was 10.94, which indicates that Deere & Co. is managing its accounts payable more efficiently compared to the previous year when the ratio was 9.13.
The increase in the payables turnover ratio suggests that Deere & Co. is paying its suppliers more frequently relative to the cost of goods sold. This may indicate improved payment terms, better working capital management, or strong supplier relationships.
It's important to note that while a higher payables turnover ratio can be a positive sign of efficiency, it can also indicate potential cash flow issues or strained relationships with suppliers if the company is paying too quickly. Therefore, it's essential to consider other factors and ratios in conjunction with the payables turnover to get a comprehensive view of Deere & Co.'s financial health and supplier management.
Peer comparison
Oct 29, 2023