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.
Peer comparison
Dec 31, 2023