Dow Inc (DOW)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 40,473,000 | 40,654,000 | 40,397,000 | 40,708,000 | 42,330,000 | 43,262,000 | 46,031,000 | 49,079,000 | 50,574,000 | 51,802,000 | 51,087,000 | 48,963,000 | 46,307,000 | 43,133,000 | 39,371,000 | 35,660,000 | 33,346,000 | 32,929,000 | 33,935,000 | 35,745,000 |
| Payables | US$ in thousands | 6,541,000 | 7,048,000 | 6,969,000 | 6,787,000 | 6,326,000 | 6,318,000 | 6,165,000 | 6,560,000 | 7,216,000 | 7,607,000 | 8,517,000 | 8,541,000 | 8,416,000 | 7,497,000 | 7,302,000 | 6,569,000 | 5,889,000 | 5,364,000 | 5,032,000 | 5,584,000 |
| Payables turnover | 6.19 | 5.77 | 5.80 | 6.00 | 6.69 | 6.85 | 7.47 | 7.48 | 7.01 | 6.81 | 6.00 | 5.73 | 5.50 | 5.75 | 5.39 | 5.43 | 5.66 | 6.14 | 6.74 | 6.40 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $40,473,000K ÷ $6,541,000K
= 6.19
The payables turnover ratio for Dow Inc has shown some fluctuations over the period under review. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance during a certain period.
The payables turnover ratio for Dow Inc was 6.40 as of March 31, 2020, and reached its peak at 7.48 as of March 31, 2023. The ratio then exhibited a gradual decline to 5.80 as of June 30, 2024.
Overall, the payables turnover ratio for Dow Inc has generally been above 5, indicating that the company is efficiently managing its payables by paying them off multiple times within a year. However, the slight decline in the ratio in the last few quarters may suggest a lengthening of the company's payment cycle or changes in its payment policies.
It is essential for investors and analysts to monitor the payables turnover ratio along with other financial metrics to assess the company's liquidity, operational efficiency, and overall financial health.
Peer comparison
Dec 31, 2024