Itron Inc (ITRI)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,961,090 | 1,835,400 | 1,614,570 | 1,799,340 | 1,930,110 |
| Payables | US$ in thousands | 144,929 | 199,520 | 237,178 | 193,129 | 215,639 |
| Payables turnover | 13.53 | 9.20 | 6.81 | 9.32 | 8.95 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,961,090K ÷ $144,929K
= 13.53
The payables turnover ratio measures how efficiently a company is managing its accounts payable by assessing how many times a company pays off its suppliers during a specific period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently.
For Itron Inc, the payables turnover ratio has fluctuated over the years:
- On December 31, 2020, the payables turnover was 8.95.
- By December 31, 2021, the ratio increased to 9.32, indicating an improvement in the company's ability to manage its accounts payable effectively.
- However, in 2022, the ratio decreased to 6.81, suggesting that Itron Inc took longer to pay off its suppliers during that period.
- The ratio then rebounded to 9.20 by December 31, 2023, showing a better performance in managing payables compared to 2022.
- In the most recent period ending December 31, 2024, the payables turnover ratio spiked to 13.53, signaling a significant increase in the company's efficiency in settling its accounts payable obligations promptly.
Overall, the trend shows some variability, but the general trajectory indicates an improvement in managing payables efficiency, especially evidenced by the substantial increase in the ratio in 2024.
Peer comparison
Dec 31, 2024