Dow Inc (DOW)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 40,473,000 | 42,330,000 | 50,574,000 | 46,307,000 | 33,346,000 |
| Payables | US$ in thousands | 6,541,000 | 6,326,000 | 7,216,000 | 8,416,000 | 5,889,000 |
| Payables turnover | 6.19 | 6.69 | 7.01 | 5.50 | 5.66 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $40,473,000K ÷ $6,541,000K
= 6.19
The payables turnover ratio for Dow Inc has shown a slight decrease from 5.66 in 2020 to 5.50 in 2021. However, there was a notable increase to 7.01 in 2022 followed by a slight decline to 6.69 in 2023 and further to 6.19 in 2024. This indicates that the company is taking longer to pay its suppliers in recent years compared to earlier periods, potentially signaling changes in its payment policies or relationships with vendors. Overall, the payables turnover ratio for Dow Inc has displayed some fluctuation over the years, suggesting the need for a closer examination of the company's financial management of working capital and supplier relationships.
Peer comparison
Dec 31, 2024