Genpact Limited (G)
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 | 2,906,223 | 2,884,861 | 2,869,118 | 2,867,890 | 2,834,774 | 2,820,093 | 2,756,560 | 2,675,286 | 2,590,252 | 2,501,241 | 2,453,384 | 2,414,294 | 2,418,137 | 2,435,140 | 2,402,970 | 2,380,322 | 2,294,688 | 2,197,174 | 2,104,927 | 1,996,581 |
| Payables | US$ in thousands | 27,739 | 26,659 | 41,956 | 22,713 | 35,809 | 27,925 | 26,964 | 21,098 | 24,984 | 24,834 | 25,194 | 21,567 | 13,910 | 30,754 | 19,182 | 26,070 | 21,981 | 20,954 | 24,398 | 29,494 |
| Payables turnover | 104.77 | 108.21 | 68.38 | 126.27 | 79.16 | 100.99 | 102.23 | 126.80 | 103.68 | 100.72 | 97.38 | 111.94 | 173.84 | 79.18 | 125.27 | 91.31 | 104.39 | 104.86 | 86.27 | 67.69 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,906,223K ÷ $27,739K
= 104.77
The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times during a period the company pays off its suppliers. A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently, which could be a sign of good liquidity management or negotiating favorable credit terms.
Analyzing the payables turnover ratio of Genpact Ltd over the past eight quarters, we observe fluctuations in the metric. In Q1 2023, the payables turnover ratio reached its highest point at 126.27, suggesting that Genpact was able to pay off its suppliers approximately 126 times during the quarter. This indicates the company was managing its accounts payable very efficiently during that period.
On the other hand, in Q2 2023, the payables turnover ratio dropped significantly to 68.38, signaling a decrease in the frequency of paying off suppliers compared to the previous quarter. This could imply a potential slowdown in accounts payable management or changes in payment terms.
Overall, the payables turnover ratio of Genpact Ltd has exhibited variability over the analyzed quarters. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's financial health and management of supplier relationships.
Peer comparison
Dec 31, 2023