ITT Inc (ITT)

Payables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 2,383,400 2,175,700 2,065,400 1,865,500 1,695,600
Payables US$ in thousands 458,400 437,000 401,100 373,400 306,800
Payables turnover 5.20 4.98 5.15 5.00 5.53

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,383,400K ÷ $458,400K
= 5.20

ITT Inc's payables turnover has been relatively stable over the past five years, ranging from 4.98 to 5.53. This indicates that on average, the company is able to pay off its accounts payable obligations approximately 5 times within a given year. A higher payables turnover ratio suggests that the company is managing its accounts payable efficiently by paying off its suppliers quickly, which can be a positive indication of strong supplier relationships and liquidity management. However, a decreasing trend in the payables turnover ratio may signal potential issues with cash flow or changes in payment terms with suppliers that could warrant further investigation. In ITT Inc's case, the slight fluctuations in the payables turnover ratio suggest a consistent approach to managing its accounts payable over the years.