Koppers Holdings Inc (KOP)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,979,300 | 1,858,900 | 1,567,000 | 1,527,200 | 1,653,100 |
| Payables | US$ in thousands | 202,900 | 207,400 | 171,900 | 154,100 | 162,800 |
| Payables turnover | 9.76 | 8.96 | 9.12 | 9.91 | 10.15 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,979,300K ÷ $202,900K
= 9.76
The payables turnover for Koppers Holdings Inc has been relatively consistent over the past five years, ranging from 7.82 to 8.52. This indicates that the company is able to effectively manage its accounts payable by paying its suppliers in a timely manner. A higher payables turnover ratio suggests that the company is efficiently utilizing its trade credit terms and is able to convert its accounts payable into cash quickly.
The slight fluctuations in the payables turnover ratio over the years may be attributed to changes in the company's payment terms with suppliers, fluctuations in the volume of purchases, or changes in the company's overall operating efficiency. Overall, a consistently high payables turnover ratio is a positive indicator of the company's liquidity and operational efficiency in managing its working capital.
Peer comparison
Dec 31, 2023