Eastman Chemical Company (EMN)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,149,000 | 8,443,000 | 7,976,000 | 6,498,000 | 7,039,000 |
| Payables | US$ in thousands | 1,440,000 | 1,607,000 | 1,513,000 | 1,051,000 | 1,170,000 |
| Payables turnover | 4.96 | 5.25 | 5.27 | 6.18 | 6.02 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,149,000K ÷ $1,440,000K
= 4.96
The payables turnover ratio for Eastman Chemical Co has shown a decreasing trend over the past five years, with values of 6.11 in 2023, 6.40 in 2022, 6.50 in 2021, 8.13 in 2020, and 7.91 in 2019. This indicates that the company is taking longer to pay off its suppliers compared to previous years. A lower payables turnover ratio may suggest potential liquidity issues or inefficiencies in managing accounts payable. Further analysis of the company's payment policies and relationships with suppliers is recommended to understand the reasons behind this trend and to address any potential concerns.
Peer comparison
Dec 31, 2023