FMC Corporation (FMC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,572,500 | 4,331,100 | 2,873,500 | 2,590,100 | 2,526,200 |
| Payables | US$ in thousands | 602,400 | 1,252,200 | 1,135,000 | 946,700 | 900,100 |
| Payables turnover | 5.93 | 3.46 | 2.53 | 2.74 | 2.81 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,572,500K ÷ $602,400K
= 5.93
The payables turnover ratio for FMC Corp. has shown variations over the past five years. In 2023, the payables turnover ratio improved significantly to 4.41, indicating that the company took approximately 4.41 times to pay off its accounts payable during the year. This may suggest that FMC Corp. managed its accounts payable more efficiently in 2023 compared to the previous years.
In 2022, the payables turnover ratio was 2.78, showing a moderate increase from the prior year. However, it remained lower compared to 2023. This indicates that the company took longer to settle its accounts payable in 2022.
In 2021 and 2020, the payables turnover ratios were 2.53 and 2.74 respectively, indicating a somewhat consistent performance in managing accounts payable during these years. Although there was a slight increase in 2020 compared to 2021, the ratios remained relatively stable.
In 2019, FMC Corp. had a payables turnover ratio of 2.81, slightly higher than in the following years. This suggests that the company was relatively efficient in settling its accounts payable in 2019.
Overall, the trend in FMC Corp.'s payables turnover ratio indicates improvement in 2023, with varying levels of efficiency in managing accounts payable in the preceding years. A higher payables turnover ratio generally implies more efficient management of accounts payable and can be indicative of effective working capital management.
Peer comparison
Dec 31, 2023