Eaton Corporation PLC (ETN)
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 | 14,762,000 | 14,576,000 | 14,437,000 | 14,195,000 | 13,865,000 | 13,545,000 | 13,338,000 | 13,378,000 | 13,293,000 | 13,245,000 | 12,958,000 | 12,290,000 | 12,408,000 | 12,786,000 | 13,247,000 | 14,067,000 | 14,338,000 | 14,452,000 | 14,537,000 | 14,511,000 |
| Payables | US$ in thousands | 3,365,000 | 3,255,000 | 3,192,000 | 3,118,000 | 3,072,000 | 2,937,000 | 3,013,000 | 2,867,000 | 2,797,000 | 2,591,000 | 2,484,000 | 2,172,000 | 1,987,000 | 1,788,000 | 1,620,000 | 1,785,000 | 2,114,000 | 2,290,000 | 2,268,000 | 2,274,000 |
| Payables turnover | 4.39 | 4.48 | 4.52 | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | 4.75 | 5.11 | 5.22 | 5.66 | 6.24 | 7.15 | 8.18 | 7.88 | 6.78 | 6.31 | 6.41 | 6.38 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $14,762,000K ÷ $3,365,000K
= 4.39
To analyze Eaton Corporation plc's payables turnover, we can calculate the average payables turnover ratio based on the data provided for the last eight quarters.
The average payables turnover ratio for Eaton Corporation plc over the past eight quarters is approximately 4.50. This indicates that, on average, the company is able to convert its accounts payable into cash 4.5 times per year.
A higher payables turnover ratio suggests that the company is managing its accounts payable efficiently by quickly paying off its suppliers, which could indicate good liquidity management. On the other hand, a lower ratio may indicate that the company is taking longer to pay its suppliers, potentially signaling liquidity issues or strained relationships with vendors.
Overall, Eaton Corporation plc's payables turnover ratio of around 4.50 shows consistent performance in managing its accounts payable over the past eight quarters. However, it is essential to compare this ratio with industry benchmarks or historical performance to gain a more comprehensive understanding of the company's payables management efficiency.
Peer comparison
Dec 31, 2023