Graco Inc (GGG)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,034,580 | 1,086,080 | 953,659 | 795,178 | 786,289 |
| Payables | US$ in thousands | 72,214 | 84,218 | 78,432 | 58,305 | 54,117 |
| Payables turnover | 14.33 | 12.90 | 12.16 | 13.64 | 14.53 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,034,580K ÷ $72,214K
= 14.33
The payables turnover ratio for Graco Inc has been relatively stable over the past five years, indicating that the company is managing its accounts payable efficiently. The ratio has ranged from 12.16 to 14.53, with an average of approximately 13.91. This suggests that, on average, Graco Inc is able to pay off its suppliers around 13.91 times in a year.
A higher payables turnover ratio generally indicates that a company is paying off its suppliers quickly, which can be a positive sign of strong liquidity and good relationships with vendors. However, it is important to consider industry norms and individual company circumstances when interpreting this ratio.
Overall, the consistent and relatively high payables turnover ratio for Graco Inc reflects effective management of accounts payable and a healthy working capital cycle.
Peer comparison
Dec 31, 2023