ITT Inc (ITT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,175,700 | 2,065,400 | 1,865,500 | 1,695,600 | 1,936,300 |
| Payables | US$ in thousands | 437,000 | 401,100 | 373,400 | 306,800 | 332,400 |
| Payables turnover | 4.98 | 5.15 | 5.00 | 5.53 | 5.83 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,175,700K ÷ $437,000K
= 4.98
The payables turnover ratio for ITT Inc has shown a decreasing trend over the past five years, declining from 5.83 in 2019 to 4.98 in 2023. This indicates that the company took longer to pay its suppliers in 2023 compared to previous years. A payables turnover ratio below 1 suggests a longer payment period potentially indicating poor cash flow management or strained supplier relationships. However, ITT Inc's payables turnover ratios are all above 1, indicating that the company is generally paying its suppliers within a reasonable timeframe. It is important for the company to monitor this ratio closely to ensure efficient management of payables and maintain positive supplier relationships.
Peer comparison
Dec 31, 2023