Littelfuse Inc (LFUS)
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 | 1,792,334 | 1,840,456 | 1,863,772 | 1,829,101 | 1,917,460 | 1,866,474 | 1,758,911 | 1,708,956 | 1,628,346 | 1,187,806 | 1,099,347 | 996,197 | 914,336 | 919,736 | 901,791 | 923,591 | 959,031 | 956,131 | 1,001,319 | 1,048,645 |
| Payables | US$ in thousands | 173,535 | 166,725 | 173,353 | 191,346 | 208,571 | 219,447 | 219,764 | 212,644 | 222,039 | 221,889 | 205,138 | 179,723 | 145,984 | 120,938 | 113,767 | 106,796 | 117,320 | 107,211 | 123,058 | 129,092 |
| Payables turnover | 10.33 | 11.04 | 10.75 | 9.56 | 9.19 | 8.51 | 8.00 | 8.04 | 7.33 | 5.35 | 5.36 | 5.54 | 6.26 | 7.61 | 7.93 | 8.65 | 8.17 | 8.92 | 8.14 | 8.12 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,792,334K ÷ $173,535K
= 10.33
The payables turnover ratio measures how efficiently a company manages its payments to suppliers. It is calculated by dividing the cost of goods sold by the average accounts payable for a certain period.
In the case of Littelfuse Inc, the payables turnover ratio has been fluctuating over the past five years. The ratio was relatively steady between 2019 and 2021, ranging from 8.12 to 8.92 times per year. However, starting from 2022, the ratio began to increase significantly, reaching a peak of 11.04 in September 2023.
This upward trend indicates that Littelfuse Inc has been improving its efficiency in paying its suppliers. A higher payables turnover ratio suggests that the company is able to settle its payables more quickly, which could potentially indicate strong supplier relationships, effective cash management, or favorable payment terms negotiated with suppliers.
Overall, the increasing trend in Littelfuse Inc's payables turnover ratio reflects positively on the company's ability to manage its accounts payable efficiently, which could have positive implications for its working capital management and overall financial health.
Peer comparison
Dec 31, 2023