Genpact Limited (G)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,077,070 | 2,906,220 | 2,834,770 | 2,590,250 | 2,418,140 |
| Payables | US$ in thousands | 36,469 | 27,739 | 35,809 | 24,984 | 13,910 |
| Payables turnover | 84.37 | 104.77 | 79.16 | 103.68 | 173.84 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,077,070K ÷ $36,469K
= 84.37
The payables turnover ratio for Genpact Limited has shown a decreasing trend over the years, declining from 173.84 in 2020 to 84.37 in 2024. This indicates that the company's ability to effectively manage its accounts payable has weakened over the period under review.
A higher payables turnover ratio is typically seen as a positive sign, suggesting that the company is paying off its suppliers more quickly. Conversely, a declining ratio may signal that the company is taking longer to settle its payables, which could indicate potential liquidity issues or challenges in managing working capital efficiently.
Genpact Limited should closely monitor its payables turnover ratio and assess the underlying reasons for the decrease to ensure that it does not adversely impact the company's financial health and operations. The company may need to implement strategies to improve its payables management and overall working capital efficiency.
Peer comparison
Dec 31, 2024