Innospec Inc (IOSP)

Payables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 1,784,700 1,765,000 1,751,700 1,332,200 1,159,900
Payables US$ in thousands 163,800 163,600 165,300 148,700 98,700
Payables turnover 10.90 10.79 10.60 8.96 11.75

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,784,700K ÷ $163,800K
= 10.90

The payables turnover ratio measures how efficiently Innospec Inc is managing its accounts payable. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly.

In 2020, the payables turnover ratio was 11.75, indicating that Innospec was paying its suppliers approximately 11.75 times during the year.

In 2021, the payables turnover ratio decreased to 8.96, suggesting a decrease in the frequency of payments to suppliers compared to the previous year.

In 2022, the payables turnover ratio improved to 10.60, indicating that Innospec somewhat increased the speed of payments to suppliers.

In 2023, the payables turnover ratio further increased to 10.79, signaling a continued improvement in the management of accounts payable.

In 2024, the payables turnover ratio slightly rose to 10.90, showing that Innospec maintained a relatively consistent pace in paying its suppliers compared to the previous year.

Overall, there have been fluctuations in Innospec's payables turnover ratio over the past five years, with an initial decrease, followed by some improvements, indicating varying effectiveness in managing accounts payable over the period.