Dover Corporation (DOV)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,282,340 | 7,317,870 | 6,795,090 | 5,934,280 | 4,515,460 |
| Payables | US$ in thousands | 958,542 | 1,068,140 | 1,073,570 | 853,942 | 920,593 |
| Payables turnover | 7.60 | 6.85 | 6.33 | 6.95 | 4.90 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,282,340K ÷ $958,542K
= 7.60
The payables turnover ratio for Dover Corp. has shown a consistent upward trend over the past five years, increasing from 4.59 in 2019 to 5.59 in 2023. This indicates that Dover Corp. has been able to effectively manage and pay off its accounts payable faster each year. A higher payables turnover ratio suggests that the company is efficiently utilizing its supplier credit terms and managing its cash flow effectively.
The gradual improvement in the payables turnover ratio reflects Dover Corp.'s increasing efficiency in managing its accounts payable balance relative to its cost of goods sold. This trend may indicate stronger vendor relationships, negotiation power, or more efficient cash management practices. Overall, the increasing payables turnover ratio is a positive sign of Dover Corp.'s financial health and operational efficiency in managing its payables.
Peer comparison
Dec 31, 2023