Knowles Cor (KN)
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 | 435,700 | 420,700 | 428,100 | 432,600 | 460,300 | 471,900 | 497,900 | 503,700 | 508,600 | 526,400 | 520,900 | 508,300 | 490,800 | 483,900 | 495,600 | 520,500 | 525,800 | 511,000 | 515,100 | 501,800 |
| Payables | US$ in thousands | 51,300 | 52,300 | 48,500 | 70,700 | 41,400 | 58,300 | 64,400 | 81,300 | 90,900 | 72,900 | 72,700 | 81,000 | 70,300 | 68,900 | 75,000 | 79,500 | 87,700 | 73,900 | 65,200 | 71,700 |
| Payables turnover | 8.49 | 8.04 | 8.83 | 6.12 | 11.12 | 8.09 | 7.73 | 6.20 | 5.60 | 7.22 | 7.17 | 6.28 | 6.98 | 7.02 | 6.61 | 6.55 | 6.00 | 6.91 | 7.90 | 7.00 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $435,700K ÷ $51,300K
= 8.49
Knowles Corp's payables turnover ratio has exhibited fluctuations over the past eight quarters. The payables turnover ratio represents the number of times a company pays off its accounts payable balance within a specific period. A higher payables turnover ratio indicates a shorter time frame in settling payables, which can suggest efficient management of payables.
In Q4 2023, the payables turnover ratio stood at 8.49, showing a slight improvement compared to Q3 2023 (7.97). This increase may indicate that Knowles Corp managed its payables more effectively during this period.
Looking at the trend over the past eight quarters, the payables turnover ratio has generally been within a range of 6.06 to 11.02. The highest ratio was observed in Q4 2022 at 11.02, signifying a relatively rapid turnover of payables, which could be due to various factors such as negotiation of favorable payment terms with suppliers or efficient cash management practices.
Conversely, the lowest payables turnover ratio was recorded in Q1 2022 at 6.20, suggesting a longer period taken to settle payables during that quarter. This could be a result of seasonal factors, changes in supplier relationships, or other business-specific reasons.
Overall, fluctuations in the payables turnover ratio may indicate changes in the company's payment policies, supplier relationships, or operational efficiency. It is essential for Knowles Corp to continue monitoring and analyzing this ratio to ensure effective management of its accounts payable and optimize working capital management.
Peer comparison
Dec 31, 2023