Honeywell International Inc (HON)
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 | 28,874,000 | 28,822,000 | 29,087,000 | 29,566,000 | 29,892,000 | 29,719,000 | 29,340,000 | 29,111,000 | 28,914,000 | 28,918,000 | 28,509,000 | 27,758,000 | 27,552,000 | 28,261,000 | 29,124,000 | 30,179,000 | 30,632,000 | 31,114,000 | 32,989,000 | 34,737,000 |
| Payables | US$ in thousands | 6,849,000 | 6,428,000 | 6,445,000 | 6,443,000 | 6,329,000 | 6,118,000 | 6,245,000 | 6,285,000 | 6,484,000 | 6,116,000 | 6,139,000 | 5,792,000 | 5,750,000 | 5,270,000 | 5,366,000 | 5,676,000 | 5,730,000 | 5,522,000 | 5,602,000 | 5,582,000 |
| Payables turnover | 4.22 | 4.48 | 4.51 | 4.59 | 4.72 | 4.86 | 4.70 | 4.63 | 4.46 | 4.73 | 4.64 | 4.79 | 4.79 | 5.36 | 5.43 | 5.32 | 5.35 | 5.63 | 5.89 | 6.22 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $28,874,000K ÷ $6,849,000K
= 4.22
The payables turnover ratio for Honeywell International Inc has shown a slight declining trend over the past eight quarters, starting from 3.86 in Q4 2022 to 3.36 in Q4 2023. This indicates that the company is taking longer to pay off its suppliers' invoices.
However, despite the decrease, the payables turnover ratio has stayed relatively stable within a narrow range between 3.36 and 3.86, suggesting that Honeywell has been maintaining a consistent payment schedule to its suppliers.
A lower payables turnover ratio may imply that the company is holding onto its payables for a longer period, potentially indicating a weaker bargaining power with suppliers. On the other hand, a higher payables turnover ratio could indicate a more efficient management of accounts payable and stronger negotiating power with suppliers.
Overall, Honeywell International Inc's payables turnover ratio analysis suggests that the company has been managing its payables effectively, despite the slight decrease in the ratio over the past quarters.
Peer comparison
Dec 31, 2023
See also:
Honeywell International Inc Payables Turnover (Quarterly Data)