Corning Incorporated (GLW)
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 | 8,657,000 | 9,065,000 | 9,322,000 | 9,461,000 | 9,683,000 | 9,597,000 | 9,465,000 | 9,282,000 | 9,019,000 | 8,751,000 | 8,457,000 | 8,076,000 | 7,772,000 | 7,598,000 | 7,515,000 | 7,585,000 | 7,468,000 | 7,338,000 | 7,197,000 | 6,997,000 |
| Payables | US$ in thousands | 1,466,000 | 1,459,000 | 1,519,000 | 1,662,000 | 1,804,000 | 1,808,000 | 1,934,000 | 1,849,000 | 1,612,000 | 1,396,000 | 1,312,000 | 1,272,000 | 1,174,000 | 1,176,000 | 1,109,000 | 1,250,000 | 1,587,000 | 1,447,000 | 1,297,000 | 1,278,000 |
| Payables turnover | 5.91 | 6.21 | 6.14 | 5.69 | 5.37 | 5.31 | 4.89 | 5.02 | 5.59 | 6.27 | 6.45 | 6.35 | 6.62 | 6.46 | 6.78 | 6.07 | 4.71 | 5.07 | 5.55 | 5.47 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,657,000K ÷ $1,466,000K
= 5.91
The payables turnover ratio indicates how efficiently a company is managing its accounts payable. For Corning, Inc., the payables turnover has shown consistent improvement over the past eight quarters, with values ranging from 4.89 to 6.21.
The increasing trend in the payables turnover ratio suggests that Corning, Inc. is paying off its suppliers at a faster rate, which could indicate stronger liquidity and better management of working capital. This trend may also imply good relationships with suppliers and the ability to negotiate favorable payment terms.
A payables turnover ratio above 5 indicates that Corning, Inc. is paying its suppliers approximately 5 to 6 times a year, which is relatively high and shows efficient management of trade credit. This high turnover might be a result of effective cash flow management or strategic financial planning.
Overall, the consistent increase in the payables turnover ratio for Corning, Inc. is a positive sign of effective management of accounts payable and working capital, which can contribute to the company's financial health and potentially improve profitability in the long run.
Peer comparison
Dec 31, 2023