ITT Inc (ITT)

Payables turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cost of revenue (ttm) US$ in thousands 2,383,400 2,313,900 2,285,400 2,249,500 2,175,700 2,158,900 2,136,400 2,093,600 2,065,400 2,000,600 1,948,000 1,903,900 1,865,500 1,894,000 1,827,000 1,711,100 1,695,600 1,696,700 1,776,700 1,913,500
Payables US$ in thousands 458,400 460,400 430,900 459,200 437,000 408,100 406,300 397,300 401,100 390,700 418,100 411,000 373,400 342,000 337,800 327,000 306,800 300,500 271,000 323,900
Payables turnover 5.20 5.03 5.30 4.90 4.98 5.29 5.26 5.27 5.15 5.12 4.66 4.63 5.00 5.54 5.41 5.23 5.53 5.65 6.56 5.91

December 31, 2024 calculation

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

The payables turnover ratio for ITT Inc has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio provides insight into how efficiently the company is managing its accounts payable. A higher turnover ratio indicates that the company is paying off its suppliers more frequently within a year.

Based on the data provided, ITT Inc's payables turnover ratio ranged from a low of 4.63 on March 31, 2022, to a high of 6.56 on June 30, 2020. The ratio peaked in June 2020 and has since seen some fluctuations but generally trended downwards.

The declining trend in the payables turnover ratio could imply that ITT Inc is taking longer to pay its suppliers, which may indicate a less efficient use of working capital. However, the ratio has remained relatively stable around the 5.00 to 5.30 range in more recent periods, suggesting some consistency in the company's payables management.

Overall, a payables turnover ratio analysis indicates the efficiency of ITT Inc in managing its accounts payable and its relationship with suppliers over time.