Ingredion Incorporated (INGR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,481,000 | 6,512,000 | 6,003,000 | 4,872,000 | 5,004,000 |
| Payables | US$ in thousands | 778,000 | 873,000 | 774,000 | 599,000 | 504,000 |
| Payables turnover | 8.33 | 7.46 | 7.76 | 8.13 | 9.93 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,481,000K ÷ $778,000K
= 8.33
Analyzing the payables turnover ratio of Ingredion Inc over the past five years reveals a consistent trend. The payables turnover ratio increased from 7.87 in 2020 to 8.24 in 2023, indicating the company's ability to manage its accounts payable more efficiently. This improvement suggests that Ingredion Inc is paying off its suppliers at a faster rate, which can be a positive sign of strong financial management and liquidity. The company's payables turnover ratio has generally been stable over the years, with fluctuations within a relatively narrow range. Overall, the upward trajectory of the payables turnover ratio implies that Ingredion Inc is effectively managing its accounts payable and optimizing its working capital management.
Peer comparison
Dec 31, 2023