Itron Inc (ITRI)
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 | 1,835,145 | 1,769,486 | 1,685,335 | 1,658,030 | 1,619,297 | 1,718,205 | 1,780,316 | 1,779,375 | 1,798,195 | 1,736,178 | 1,820,970 | 1,847,364 | 1,930,113 | 2,033,017 | 2,049,880 | 2,142,821 | 2,167,847 | 2,132,646 | 2,105,310 | 2,073,849 |
| Payables | US$ in thousands | 199,520 | 224,308 | 234,928 | 244,820 | 237,178 | 235,812 | 169,368 | 203,475 | 193,129 | 188,663 | 175,546 | 181,606 | 215,639 | 232,236 | 240,221 | 326,433 | 328,128 | 315,394 | 320,582 | 331,441 |
| Payables turnover | 9.20 | 7.89 | 7.17 | 6.77 | 6.83 | 7.29 | 10.51 | 8.74 | 9.31 | 9.20 | 10.37 | 10.17 | 8.95 | 8.75 | 8.53 | 6.56 | 6.61 | 6.76 | 6.57 | 6.26 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,835,145K ÷ $199,520K
= 9.20
The payables turnover ratio measures how quickly a company pays its suppliers. A higher ratio typically indicates that the company is paying its suppliers more quickly, while a lower ratio suggests a slower payment cycle.
Analyzing Itron Inc.'s payables turnover ratio over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the payables turnover ratio stood at 7.32, which was higher compared to the previous quarter (Q3 2023) at 6.27. This increase indicates that Itron Inc. paid its suppliers more frequently in Q4 2023.
Overall, Itron Inc.'s payables turnover ratio has shown variability over the quarters, with the ratio ranging from 5.19 to 8.04. This variability could be a result of changes in the company's payment terms, supplier relationships, or operational efficiency.
It is important to consider other factors such as industry norms and company-specific circumstances when interpreting the payables turnover ratio. Further analysis and comparison with industry peers would provide more insights into Itron Inc.'s payables management practices and financial performance.
Peer comparison
Dec 31, 2023