Corning Incorporated (GLW)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,842,000 | 8,657,000 | 9,683,000 | 9,019,000 | 7,772,000 |
| Payables | US$ in thousands | 1,472,000 | 1,466,000 | 1,804,000 | 1,612,000 | 1,174,000 |
| Payables turnover | 6.01 | 5.91 | 5.37 | 5.59 | 6.62 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,842,000K ÷ $1,472,000K
= 6.01
The payables turnover ratio for Corning Incorporated has exhibited a moderate fluctuation over the years, indicating the company's efficiency in managing its accounts payable. The ratio decreased from 6.62 in December 2020 to 5.59 in December 2021, suggesting a potential extension in the time taken to pay off its suppliers. However, the ratio continued to decline to 5.37 by December 2022, which could raise concerns about liquidity or vendor relationships.
Subsequently, there was a slight improvement in the payables turnover ratio to 5.91 by December 2023, potentially reflecting a better management of payables. Moreover, by December 2024, the ratio increased further to 6.01, indicating that Corning Incorporated has been able to enhance its efficiency in paying suppliers within a shorter timeframe compared to the previous year.
Overall, it is essential for the company to closely monitor its payables turnover ratio to ensure optimal cash flow management and maintain healthy relationships with its vendors.
Peer comparison
Dec 31, 2024