Dover Corporation (DOV)
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 | 7,282,340 | 7,309,440 | 7,319,280 | 7,333,230 | 7,317,870 | 7,225,070 | 7,107,280 | 6,994,850 | 6,790,460 | 6,624,530 | 6,420,990 | 6,049,370 | 5,927,740 | 5,474,480 | 5,112,850 | 4,890,120 | 4,515,460 | 4,555,170 | 4,504,190 | 4,498,940 |
| Payables | US$ in thousands | 958,542 | 970,671 | 1,028,930 | 1,039,160 | 1,068,140 | 1,143,250 | 1,200,610 | 1,136,550 | 1,073,570 | 1,047,820 | 1,006,560 | 911,074 | 853,942 | 899,814 | 912,588 | 947,006 | 920,593 | 952,708 | 960,432 | 952,162 |
| Payables turnover | 7.60 | 7.53 | 7.11 | 7.06 | 6.85 | 6.32 | 5.92 | 6.15 | 6.33 | 6.32 | 6.38 | 6.64 | 6.94 | 6.08 | 5.60 | 5.16 | 4.90 | 4.78 | 4.69 | 4.72 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $7,282,340K ÷ $958,542K
= 7.60
The payables turnover ratio measures how efficiently a company manages its accounts payable by calculating the number of times a company pays off its average accounts payable balance during a specific period. A higher payables turnover ratio indicates that the company is effectively managing its payables.
In the case of Dover Corp., the payables turnover ratio has been gradually increasing over the past quarters. In Q4 2023, the payables turnover stood at 5.59, compared to 5.57 in Q3 2023 and 5.10 in Q4 2022. This upward trend suggests that Dover Corp. has been improving its efficiency in managing its accounts payable over time.
The average payables turnover for the latest four quarters is around 5.43, indicating that Dover Corp. pays off its accounts payable approximately 5.43 times a year. This implies that Dover Corp. is able to convert its accounts payable into cash or settle its payables relatively quickly.
Overall, the increasing trend in payables turnover for Dover Corp. is a positive sign of effective management of its accounts payable, which can contribute to better cash flow management and overall financial health.
Peer comparison
Dec 31, 2023