Littelfuse Inc (LFUS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,899,370 | 1,917,470 | 1,628,350 | 1,230,780 | 1,243,540 |
| Payables | US$ in thousands | 173,535 | 208,571 | 222,039 | 145,984 | 117,320 |
| Payables turnover | 10.95 | 9.19 | 7.33 | 8.43 | 10.60 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,899,370K ÷ $173,535K
= 10.95
The payables turnover ratio for Littelfuse Inc has shown an increasing trend over the past five years. The ratio increased from 10.60 in 2019 to 10.95 in 2023, indicating that the company is managing its accounts payable more efficiently. This suggests that Littelfuse is taking fewer days to pay its suppliers, which can be seen as a positive sign of financial health and good supplier relationships.
A higher payables turnover ratio indicates that the company is paying its suppliers quickly and efficiently. This may help in building stronger relationships with suppliers and negotiating better terms. It also implies effective working capital management and potentially lower financing costs.
Overall, the increasing trend in Littelfuse's payables turnover ratio reflects effective management of accounts payable and liquidity, which is essential for sustaining a healthy financial position.
Peer comparison
Dec 31, 2023