Itron Inc (ITRI)

The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to average accounts payable. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Itron Inc.'s payables turnover has been fluctuating over the past five years. In 2023, the payables turnover ratio improved significantly to 7.32 from 5.37 in 2022, indicating that Itron Inc. paid its suppliers more frequently relative to its cost of goods sold in 2023. This could suggest that the company was able to manage its accounts payable more effectively during the year, potentially negotiating better payment terms with suppliers or streamlining its payment processes.

Comparing the payables turnover to previous years, the ratio in 2021 was also relatively high at 7.29, which indicates a similar level of efficiency in managing accounts payable as in 2023. However, there was a slight decrease in 2020 to 7.29 from 7.29 in 2019.

Overall, the increasing trend in payables turnover from 2019 to 2023 suggests an improvement in Itron Inc.'s ability to manage its accounts payable effectively and maintain good relationships with its suppliers. It is important for the company to continue monitoring this ratio to ensure consistent and efficient management of its accounts payable in the future.

Peer comparison

Dec 31, 2023