Intel Corporation (INTC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 39,844,000 | 45,099,000 | 46,217,000 | 42,390,000 | 36,568,000 |
| Payables | US$ in thousands | 8,578,000 | 9,595,000 | 5,747,000 | 5,581,000 | 4,128,000 |
| Payables turnover | 4.64 | 4.70 | 8.04 | 7.60 | 8.86 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $39,844,000K ÷ $8,578,000K
= 4.64
The payables turnover ratio of Intel Corporation has exhibited a declining trend over the past five years, from 8.86 in 2019 to 4.64 in 2023. A lower payables turnover ratio may indicate that Intel is taking longer to pay its suppliers or managing its payables less efficiently.
A high payables turnover ratio is generally preferred as it implies that a company is paying its suppliers more frequently within a given period. A decreasing trend in payables turnover can suggest potential liquidity issues or slower payments to suppliers, which may strain relationships with vendors in the long run.
The decreasing trend in payables turnover should be further investigated to determine the root cause and assess its impact on Intel's financial performance and working capital management. Additionally, comparing this ratio to industry benchmarks and Intel's competitors can provide valuable insights into the company's efficiency in managing its payables.
Peer comparison
Dec 31, 2023