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.