International Flavors & Fragrances Inc (IFF)

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	14,204,000	11,674,000	14,041,000	14,335,000	14,345,000	14,455,000	12,173,000	12,070,000	11,599,000	9,679,220	7,791,620	5,652,642	4,157,072	4,169,952	3,876,809	3,624,116	3,325,829	3,287,229	3,059,854	2,835,824
Payables	US$ in thousands	1,378,000	1,112,000	1,227,000	1,197,000	1,418,000	1,527,000	1,576,000	1,629,000	1,532,000	1,332,000	1,389,000	1,337,000	556,000	505,259	550,533	456,156	510,372	416,563	463,555	476,413
Payables turnover		10.31	10.50	11.44	11.98	10.12	9.47	7.72	7.41	7.57	7.27	5.61	4.23	7.48	8.25	7.04	7.94	6.52	7.89	6.60	5.95

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $14,204,000K ÷ $1,378,000K
= 10.31

The payables turnover ratio measures how efficiently a company is paying its suppliers. It is calculated by dividing the total purchases made on credit by the average accounts payable balance during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a positive sign of strong liquidity management.

Analyzing the payables turnover ratio of International Flavors & Fragrances Inc. over the past eight quarters, we observe fluctuations in the ratio. In Q3 2023, the payables turnover ratio was 7.13, which was the highest among the reported quarters. This indicates that the company paid its suppliers more frequently during this period compared to other quarters. Conversely, in Q2 2022, the payables turnover ratio was 5.26, the lowest in the dataset, suggesting that the company took longer to pay its suppliers during that period.

Overall, the payables turnover ratio for International Flavors & Fragrances Inc. has shown some variability but generally remains within a relatively stable range between 5.09 and 7.13. This indicates that the company has been managing its accounts payable efficiently over the quarters analyzed. Further examination and comparison with industry benchmarks could provide additional insights into the company's vendor payment practices and financial health.