JBTMarel Corp (JBTM)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,089,500 | 1,078,700 | 1,060,900 | 918,700 | 1,194,100 |
| Payables | US$ in thousands | 131,000 | 134,600 | 170,600 | 186,000 | 140,700 |
| Payables turnover | 8.32 | 8.01 | 6.22 | 4.94 | 8.49 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,089,500K ÷ $131,000K
= 8.32
The payables turnover ratio for JBTMarel Corp over the period from December 31, 2020, to December 31, 2024, exhibits notable fluctuations that reflect changes in the company's management of its accounts payable relative to its cost of goods sold.
At the end of 2020, the payables turnover was recorded at 8.49, indicating that the company settled its accounts payable approximately 8.5 times within the fiscal year. This relatively high ratio suggests a prompt payment policy, potentially implying favorable supplier terms or a strategic approach to managing liquidity.
In 2021, the ratio declined significantly to 4.94, nearly halving the previous year's figure. This decrease indicates that JBTMarel Corp took longer to pay its suppliers than in the prior year, which could be attributed to several factors such as increased working capital needs, shifts in supplier credit terms, or deliberate extended payment strategies aimed at optimizing cash flow.
By the end of 2022, the payables turnover increased to 6.22, demonstrating a partial recovery in the company's payment speed, though still below the 2020 level. This suggests a moderate adjustment in payment practices, possibly in response to operational or strategic considerations.
In 2023, the ratio rose further to 8.01, approaching the 2020 levels, indicative of a return to a more prompt payment cycle. This trend may reflect improved liquidity positioning or a reassessment of supplier relationships aiming to strengthen supply chain reliability.
Finally, at the close of 2024, the ratio increased marginally to 8.32, slightly surpassing the 2020 figure. This indicates a maintained or slightly enhanced frequency of settling payables, suggesting stable or improved liquidity conditions and possibly a strategic preference for timely supplier payments.
Overall, the data depict a pattern of initial decline in payables turnover from 2020 to 2021, followed by a recovery and stabilization in subsequent years. The ratio's fluctuations highlight periods of cautious liquidity management and strategic adjustments in payment practices by JBTMarel Corp over the analyzed timeframe.
Peer comparison
Dec 31, 2024