Genpact Limited (G)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,906,220 | 2,834,770 | 2,590,250 | 2,418,140 | 2,294,690 |
| Payables | US$ in thousands | 27,739 | 35,809 | 24,984 | 13,910 | 21,981 |
| Payables turnover | 104.77 | 79.16 | 103.68 | 173.84 | 104.39 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,906,220K ÷ $27,739K
= 104.77
Genpact Ltd's payables turnover has experienced fluctuations over the last five years. The ratio indicates how efficiently the company is managing its accounts payable by comparing them to its cost of goods sold.
In 2020, the payables turnover ratio was notably high at 173.84, suggesting that Genpact Ltd was paying off its suppliers relatively quickly compared to the cost of goods sold for that year. This could indicate strong cash management practices or favorable payment terms negotiated with suppliers.
However, in 2022, the payables turnover ratio decreased to 79.16, indicating a slower rate of paying off suppliers compared to the cost of goods sold. This could be a result of changing business conditions, extended payment terms with suppliers, or other factors affecting the company's cash flow management.
The ratio rebounded in 2023 to 104.77, indicating an improvement in the efficiency of managing accounts payable compared to the previous year. This could suggest better working capital management or adjustments in payment practices.
Overall, fluctuations in the payables turnover ratio for Genpact Ltd over the period suggest varying degrees of efficiency in managing accounts payable and highlight the importance of closely monitoring and analyzing this metric for insights into the company's financial health and management practices.
Peer comparison
Dec 31, 2023