ITT Inc (ITT)
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 | 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 | 1,936,300 | 1,913,100 | 1,886,600 | 1,869,500 |
| Payables | US$ in thousands | 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 | 332,400 | 340,400 | 347,400 | 344,400 |
| Payables turnover | 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 | 5.83 | 5.62 | 5.43 | 5.43 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,175,700K ÷ $437,000K
= 4.98
The payables turnover ratio for ITT Inc has been relatively stable over the past eight quarters, ranging from 4.63 to 5.29. This ratio measures how efficiently the company is managing its trade payables by evaluating how many times a year the company pays off its suppliers.
A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which may suggest strong liquidity or good relationships with suppliers. Conversely, a lower ratio may indicate that the company is taking longer to pay its suppliers, potentially signaling liquidity issues or strained supplier relationships.
In the recent quarters, ITT Inc's payables turnover ratio has been consistently above 5, which generally suggests that the company is managing its payables efficiently. However, the slight fluctuations in the ratio over time may indicate changes in the company's payment policies or relationships with suppliers. Further analysis in conjunction with other financial metrics would provide a more comprehensive view of ITT Inc's financial health and operational efficiency.
Peer comparison
Dec 31, 2023