Danaher Corporation (DHR)
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 | 18,002,000 | 21,692,000 | 21,896,000 | 21,655,000 | 21,788,000 | 21,697,000 | 21,401,000 | 21,073,000 | 20,447,000 | 19,653,000 | 19,189,000 | 18,532,000 | 17,219,000 | 14,580,800 | 13,996,400 | 13,817,400 | 14,140,700 | 14,509,700 | 13,169,600 | 11,805,700 |
| Payables | US$ in thousands | 1,766,000 | 1,894,000 | 1,956,000 | 2,081,000 | 2,296,000 | 2,191,000 | — | — | 2,569,000 | — | — | — | 2,049,000 | — | — | — | — | — | — | — |
| Payables turnover | 10.19 | 11.45 | 11.19 | 10.41 | 9.49 | 9.90 | — | — | 7.96 | — | — | — | 8.40 | — | — | — | — | — | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $18,002,000K ÷ $1,766,000K
= 10.19
The payables turnover ratio measures how efficiently a company is managing its accounts payable by assessing how many times a company pays off its average accounts payable balance during a certain period.
Based on the data provided for Danaher Corp., we observe fluctuations in the payables turnover ratio over the past 8 quarters. The payables turnover ratio ranged from a low of 5.00 in Q2 2022 to a high of 6.45 in Q3 2023. This indicates variability in the company's ability to manage its accounts payable efficiently.
The increasing trend in the payables turnover ratio from Q1 2023 to Q3 2023 suggests that Danaher Corp. has been paying off its accounts payable more frequently during this period. This may indicate improved liquidity or better supplier terms.
However, the ratio decreased in Q4 2023 compared to the previous quarter, which could suggest a slowdown in accounts payable management efficiency or changes in payment terms.
It is important for investors and stakeholders to monitor the payables turnover ratio consistently to understand how effectively Danaher Corp. is managing its payables and to assess the impact on the company's working capital management and overall financial health.
Peer comparison
Dec 31, 2023