IDEX Corporation (IEX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,827,000 | 1,755,000 | 1,540,300 | 1,324,200 | 1,369,600 |
| Payables | US$ in thousands | 179,700 | 208,900 | 178,800 | 151,993 | 138,463 |
| Payables turnover | 10.17 | 8.40 | 8.61 | 8.71 | 9.89 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,827,000K ÷ $179,700K
= 10.17
The payables turnover of Idex Corporation has been relatively stable over the past five years, ranging from 8.40 to 10.17. This ratio indicates how efficiently the company is managing its trade payables by measuring the number of times a company pays off its average accounts payable balance during a period. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently within the period.
Idex Corporation's payables turnover increased from 2019 to 2020, indicating improved efficiency in managing trade payables during that period. However, there was a slight decrease in payables turnover in the following years. Despite the fluctuations, the company has shown consistency in paying off its accounts payable balances, which can be seen as a positive sign of effective cash flow management and supplier relationships. Overall, Idex Corporation's payables turnover reflects a moderate efficiency in managing its trade payables over the years analyzed.
Peer comparison
Dec 31, 2023