Ingersoll Rand Inc (IR)
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 | 3,993,900 | 3,923,000 | 3,863,800 | 3,744,900 | 3,590,700 | 3,530,800 | 3,401,100 | 3,297,400 | 3,163,900 | 3,010,000 | 2,881,800 | 2,832,200 | 2,640,600 | 1,964,600 | 1,657,300 | 1,335,200 | 1,239,200 | 1,603,400 | 1,655,100 | 1,679,300 |
| Payables | US$ in thousands | 801,200 | 663,100 | 669,200 | 730,900 | 778,700 | 698,900 | 700,900 | 701,400 | 670,500 | 632,900 | 660,800 | 674,200 | 536,400 | 624,700 | 683,500 | 764,600 | 322,900 | 336,600 | 331,800 | 342,400 |
| Payables turnover | 4.98 | 5.92 | 5.77 | 5.12 | 4.61 | 5.05 | 4.85 | 4.70 | 4.72 | 4.76 | 4.36 | 4.20 | 4.92 | 3.14 | 2.42 | 1.75 | 3.84 | 4.76 | 4.99 | 4.90 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,993,900K ÷ $801,200K
= 4.98
The payables turnover ratio for Ingersoll-Rand Inc has shown fluctuations over the past eight quarters. The ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers.
In Q4 2023, the payables turnover ratio was 4.98, which decreased from the previous quarter's ratio of 5.92. This decrease may suggest that the company took longer to pay off its suppliers compared to the previous quarter.
While Q2 2023 had the highest payables turnover ratio of 5.77, indicating efficient management of payables, there was a slight decrease in Q3 2023 to 5.12 before the significant decrease in Q4 2023.
Overall, Ingersoll-Rand Inc's payables turnover ratio has generally been above 4, indicating that the company is effectively managing its accounts payable by paying suppliers in a timely manner. However, the fluctuations in the ratio over the past quarters suggest a varying approach to managing payables, and it would be essential for the company to analyze the reasons behind these fluctuations and ensure consistency in their payables management practices.
Peer comparison
Dec 31, 2023