Flowserve Corporation (FLS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,042,140 | 3,454,650 | 3,316,730 | 3,529,750 | 3,551,540 |
| Payables | US$ in thousands | 547,824 | 476,747 | 410,062 | 440,199 | 447,582 |
| Payables turnover | 7.38 | 7.25 | 8.09 | 8.02 | 7.93 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,042,140K ÷ $547,824K
= 7.38
The payables turnover ratio for Flowserve Corp. has shown some fluctuation over the past five years. The ratio indicates how many times a company pays off its accounts payable during a period.
In 2023, the payables turnover ratio increased to 5.56 from 5.50 in 2022, suggesting that Flowserve Corp. was able to more efficiently manage its accounts payable by paying them off more frequently during the year.
Comparing to the prior years, the payables turnover ratio was slightly lower in 2022 compared to 2021, which could indicate a slight slowdown in the company's payment cycle efficiency during that year. Prior to 2022, there was a gradual increase in the payables turnover ratio from 2020 to 2021, reaching a peak of 6.08 in 2021.
Overall, despite some fluctuations, Flowserve Corp. has maintained a relatively stable payables turnover ratio over the past five years, demonstrating effective management of its accounts payable in terms of payment frequency.
Peer comparison
Dec 31, 2023