Gates Industrial Corporation plc (GTES)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,049,700 | 2,211,300 | 2,303,600 | 2,135,200 | 1,758,300 |
| Payables | US$ in thousands | 408,200 | 457,700 | 469,600 | 506,600 | 417,400 |
| Payables turnover | 5.02 | 4.83 | 4.91 | 4.21 | 4.21 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,049,700K ÷ $408,200K
= 5.02
Gates Industrial Corporation plc's payables turnover has exhibited a steady increase over the years, growing from 4.21 in 2020 to 5.02 in 2024. This indicates that the company is managing its accounts payable efficiently, as it is taking less time to pay off its suppliers, which could potentially improve cash flow and relationships with vendors. The increasing trend suggests that the company may be negotiating better credit terms with suppliers or optimizing its payment processes. Overall, a rising payables turnover ratio is a positive indicator of liquidity and operational efficiency for Gates Industrial Corporation plc.
Peer comparison
Dec 31, 2024