Gates Industrial Corporation plc (GTES)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,049,700 | 2,081,200 | 2,115,800 | 2,171,300 | 2,211,300 | 2,269,000 | 2,290,700 | 2,287,700 | 2,303,600 | 2,249,600 | 2,220,100 | 2,187,900 | 2,135,200 | 2,098,300 | 2,015,200 | 1,839,800 | 1,758,300 | 1,730,200 | 1,765,800 | 1,901,300 |
| Payables | US$ in thousands | 408,200 | 427,500 | 441,300 | 451,400 | 457,700 | 441,100 | 470,700 | — | 469,600 | — | — | — | 506,600 | — | — | — | — | — | — | — |
| Payables turnover | 5.02 | 4.87 | 4.79 | 4.81 | 4.83 | 5.14 | 4.87 | — | 4.91 | — | — | — | 4.21 | — | — | — | — | — | — | — |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,049,700K ÷ $408,200K
= 5.02
The payables turnover ratio measures how efficiently a company is managing its trade credit or accounts payable. It is calculated by dividing the total purchases made on credit by the average accounts payable during a specific period. A higher payables turnover ratio indicates that the company is paying suppliers quickly and efficiently.
Looking at the data provided for Gates Industrial Corporation plc, the payables turnover ratio was stagnant at a level of 4.21 in December 2021. However, there has been a noticeable improvement since then, with the ratio increasing to 5.02 by the end of December 2024. This suggests that the company has been more effective in managing its accounts payable and paying off its suppliers.
It is important to note that a consistently increasing payables turnover ratio can sometimes indicate that the company is delaying payments to suppliers, which may strain supplier relationships. Therefore, further analysis of the company's payment practices and supplier relationships would be necessary to fully evaluate the impact of this trend on the overall financial health of Gates Industrial Corporation plc.
Peer comparison
Dec 31, 2024