FMC Corporation (FMC)
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 | 3,572,500 | 3,726,400 | 4,031,400 | 4,090,200 | 3,902,500 | 3,534,400 | 3,119,500 | 2,968,400 | 2,873,500 | 2,725,400 | 2,662,400 | 2,584,800 | 2,590,100 | 2,580,600 | 2,544,300 | 2,567,300 | 2,526,200 | 2,492,600 | 2,439,100 | 2,447,500 |
| Payables | US$ in thousands | 602,400 | 662,500 | 1,032,700 | 1,182,800 | 1,252,200 | 1,045,700 | 1,122,200 | 1,057,400 | 1,135,000 | 1,101,400 | 1,158,000 | 1,074,400 | 946,700 | 757,200 | 842,200 | 838,400 | 900,100 | 667,000 | 785,700 | 884,500 |
| Payables turnover | 5.93 | 5.62 | 3.90 | 3.46 | 3.12 | 3.38 | 2.78 | 2.81 | 2.53 | 2.47 | 2.30 | 2.41 | 2.74 | 3.41 | 3.02 | 3.06 | 2.81 | 3.74 | 3.10 | 2.77 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,572,500K ÷ $602,400K
= 5.93
The payables turnover for FMC Corp. has fluctuated over the past eight quarters. In Q4 2023, the payables turnover was 4.41, showing an increase compared to the previous quarter. This indicates that the company is able to efficiently settle its outstanding payables relative to its cost of goods sold.
The trend suggests that FMC Corp. has been effectively managing its accounts payable over time. The peak in Q4 2023 may indicate improved supplier relations or more efficient working capital management. However, it is important to note that a high payables turnover ratio could also potentially signal stretched supplier payment terms, which may impact relationships with suppliers in the long term.
Overall, the consistent and relatively high payables turnover ratios demonstrate FMC Corp.'s ability to effectively manage its accounts payable and highlights the company's efficiency in utilizing its financial resources.
Peer comparison
Dec 31, 2023