Danaher Corporation (DHR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,753,000 | 22,531,000 | 21,159,000 | 17,865,000 | 14,140,700 |
| Payables | US$ in thousands | 1,766,000 | 2,296,000 | 2,569,000 | 2,049,000 | 1,514,400 |
| Payables turnover | 10.62 | 9.81 | 8.24 | 8.72 | 9.34 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $18,753,000K ÷ $1,766,000K
= 10.62
Payables turnover measures how quickly a company is able to pay off its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a given period.
Looking at the payables turnover trend for Danaher Corp. over the past five years, we observe fluctuations in the ratio. In 2023, the payables turnover ratio increased to 5.58 from 5.45 in 2022, indicating that the company is managing its payables more effectively. This may suggest improved liquidity or negotiation power with suppliers.
Comparing the 2023 ratio with previous years, it is higher than the ratios of 2021, 2020, and 2019. This demonstrates an improvement in Danaher's ability to pay off its suppliers promptly.
Overall, the increasing trend in payables turnover for Danaher Corp. reflects efficient management of its accounts payable, potentially signaling strong supplier relationships and effective working capital management. Further analysis of the company's payables policy and payment terms with suppliers could provide additional insights into its financial health and operational efficiency.
Peer comparison
Dec 31, 2023