IDEX Corporation (IEX)
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 | 1,827,000 | 1,839,900 | 1,838,300 | 1,809,300 | 1,755,000 | 1,690,600 | 1,648,800 | 1,589,500 | 1,540,300 | 1,485,354 | 1,414,567 | 1,361,116 | 1,324,222 | 1,317,680 | 1,330,335 | 1,353,648 | 1,369,539 | 1,370,878 | 1,371,265 | 1,368,496 |
| Payables | US$ in thousands | 179,700 | 176,300 | 189,700 | 216,000 | 208,900 | 196,600 | 214,400 | 210,200 | 178,800 | 175,864 | 178,796 | 171,379 | 151,993 | 134,782 | 137,413 | 157,724 | 138,463 | 147,079 | 160,579 | 160,594 |
| Payables turnover | 10.17 | 10.44 | 9.69 | 8.38 | 8.40 | 8.60 | 7.69 | 7.56 | 8.61 | 8.45 | 7.91 | 7.94 | 8.71 | 9.78 | 9.68 | 8.58 | 9.89 | 9.32 | 8.54 | 8.52 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,827,000K ÷ $179,700K
= 10.17
The payables turnover ratio measures how efficiently a company manages its suppliers by evaluating how quickly it pays its trade payables. A higher payables turnover ratio usually indicates that the company is paying its suppliers more quickly.
In the case of Idex Corporation, the payables turnover ratio has been relatively stable over the past eight quarters, ranging from 7.56 to 10.44. This suggests that the company has been consistently managing its trade payables effectively.
In Q4 2023, Idex Corporation's payables turnover ratio decreased slightly to 10.17 from 10.44 in the previous quarter. While this decrease may indicate a slightly slower pace of payment to suppliers, the ratio remains at a relatively high level, reflecting efficient management of payables.
Overall, Idex Corporation's payables turnover ratio indicates that the company is maintaining a good balance in managing its trade payables, neither delaying payments excessively nor paying too quickly, which demonstrates effective supplier relationships and working capital management.
Peer comparison
Dec 31, 2023