Knowles Cor (KN)
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 | 414,500 | 469,700 | 447,700 | 425,600 | 390,500 | 375,500 | 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 |
| Payables | US$ in thousands | 58,500 | 34,200 | 52,500 | 67,800 | 35,900 | 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 |
| Payables turnover | 7.09 | 13.73 | 8.53 | 6.28 | 10.88 | 7.18 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $414,500K ÷ $58,500K
= 7.09
Knowles Cor's payables turnover ratio has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The payables turnover ratio represents the efficiency with which the company is managing its accounts payable by paying off its suppliers.
The ratio has shown an increasing trend from 6.55 on March 31, 2020, to a peak of 13.73 on September 30, 2024, indicating that the company was able to manage its payables more efficiently during this period. However, there were periods of decline in between, with the ratio dropping to 5.60 on December 31, 2021.
The significant increase in the payables turnover ratio to 13.73 on September 30, 2024, suggests that Knowles Cor may have negotiated better payment terms with its suppliers, leading to a quicker turnover of payables. This could indicate a stronger financial position or improved management of working capital during that specific period.
It is essential for Knowles Cor to maintain a balance in managing payables efficiently to ensure positive relationships with suppliers while also optimizing cash flows and working capital. Further analysis of the company's financial statements and operational activities would provide more insights into the factors influencing the fluctuations in the payables turnover ratio.
Peer comparison
Dec 31, 2024