Flowserve Corporation (FLS)
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 | 4,037,015 | 3,901,708 | 3,726,466 | 3,565,065 | 3,447,921 | 3,351,024 | 3,312,369 | 3,318,273 | 3,309,954 | 3,362,455 | 3,394,408 | 3,458,856 | 3,524,154 | 3,589,221 | 3,633,014 | 3,632,370 | 3,544,349 | 3,485,910 | 3,485,104 | 3,523,421 |
| Payables | US$ in thousands | 547,824 | 481,337 | 492,623 | 488,761 | 476,747 | 414,372 | 433,508 | 418,719 | 410,062 | 370,977 | 393,608 | 386,210 | 440,199 | 428,870 | 428,856 | 425,795 | 447,582 | 398,215 | 402,118 | 398,052 |
| Payables turnover | 7.37 | 8.11 | 7.56 | 7.29 | 7.23 | 8.09 | 7.64 | 7.92 | 8.07 | 9.06 | 8.62 | 8.96 | 8.01 | 8.37 | 8.47 | 8.53 | 7.92 | 8.75 | 8.67 | 8.85 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,037,015K ÷ $547,824K
= 7.37
The payables turnover of Flowserve Corp., which measures how efficiently the company is managing its accounts payable, has shown some fluctuations over the past eight quarters. In Q3 2023, the payables turnover ratio was the highest at 6.15, indicating that Flowserve Corp. was able to convert its accounts payable into cash relatively quickly during that period. However, this ratio decreased to 5.56 in Q4 2023, showing a slight decrease in efficiency in managing payables compared to the previous quarter.
Overall, the payables turnover ratio has remained relatively stable between 5.50 and 6.15 over the analyzed periods, suggesting that Flowserve Corp. has been consistently effective in managing its accounts payable and maintaining good relationships with its suppliers. It is essential for the company to continue monitoring and managing its payables effectively to ensure smooth cash flow operations and sustain its financial health.
Peer comparison
Dec 31, 2023