Honeywell International Inc (HON)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 28,874,000 | 29,892,000 | 29,075,000 | 27,960,000 | 30,835,000 |
| Payables | US$ in thousands | 6,849,000 | 6,329,000 | 6,484,000 | 5,750,000 | 5,730,000 |
| Payables turnover | 4.22 | 4.72 | 4.48 | 4.86 | 5.38 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $28,874,000K ÷ $6,849,000K
= 4.22
The payables turnover ratio for Honeywell International Inc has shown a declining trend over the past five years, decreasing from 4.25 in 2019 to 3.36 in 2023. This indicates that the company is taking longer to pay its suppliers compared to previous years. A lower payables turnover ratio may suggest potential liquidity issues or strained relationships with suppliers. However, it is important to consider industry norms and company-specific factors when interpreting this ratio. Further analysis of the company's payables management practices and working capital efficiency is recommended to better understand the implications of this decreasing trend.
Peer comparison
Dec 31, 2023