Innospec Inc (IOSP)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,765,000 | 1,751,700 | 1,332,200 | 1,159,900 | 1,352,700 |
| Payables | US$ in thousands | 163,600 | 165,300 | 148,700 | 98,700 | 122,000 |
| Payables turnover | 10.79 | 10.60 | 8.96 | 11.75 | 11.09 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,765,000K ÷ $163,600K
= 10.79
The payables turnover ratio for Innospec Inc has displayed some fluctuations over the past five years. The ratio was highest in 2020 at 8.62 and lowest in 2021 at 7.05. This indicates that in 2020, the company took approximately 8.62 days to pay off its accounts payable, while in 2021 it took around 7.05 days.
Overall, the payables turnover ratio has been relatively stable, with minor variations from year to year. The consistency in this ratio suggests that Innospec Inc has been managing its accounts payable efficiently, maintaining a balance between timely payments and maximizing the utilization of trade credit. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly, which can sometimes signal strong liquidity and good relationships with vendors.
It's important to continue monitoring this ratio in the future to ensure that the company's payables management remains effective and sustainable.
Peer comparison
Dec 31, 2023