Gates Industrial Corporation plc (GTES)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,211,300 | 2,303,600 | 2,135,200 | 1,758,300 | 1,944,600 |
| Payables | US$ in thousands | 457,700 | 469,600 | 506,600 | 417,400 | 374,700 |
| Payables turnover | 4.83 | 4.91 | 4.21 | 4.21 | 5.19 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,211,300K ÷ $457,700K
= 4.83
The payables turnover ratio for Gates Industrial Corporation plc has shown some fluctuations over the past five years. In 2023, the payables turnover ratio was 4.83, a slight decrease from 4.91 in 2022. This indicates that the company paid its suppliers approximately 4.83 times during the year, implying a somewhat slower turnover rate in settling its payables.
Comparing 2023 to 2021 and 2020, we observe an improvement in the payables turnover ratio as the ratio increased from 4.21 in both years to 4.83 in 2023. This suggests that Gates Industrial Corporation plc has become more efficient in managing its payables, paying its suppliers more frequently compared to the previous years.
However, when comparing 2023 to 2019, there is a noticeable decrease in the payables turnover ratio from 5.19 to 4.83. This signifies a reduction in the frequency of paying suppliers within the year, indicating a potential extension in payment terms or a slowdown in payables management efficiency.
Overall, while the payables turnover ratio for Gates Industrial Corporation plc has varied over the years, it is essential for the company to continue monitoring and managing its payables effectively to ensure optimal working capital management and supplier relationships.
Peer comparison
Dec 31, 2023