Lennox International Inc (LII)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,434,100 | 3,433,700 | 3,005,700 | 2,594,000 | 2,727,400 |
| Payables | US$ in thousands | 374,700 | 427,300 | 402,100 | 340,300 | 372,400 |
| Payables turnover | 9.16 | 8.04 | 7.48 | 7.62 | 7.32 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,434,100K ÷ $374,700K
= 9.16
Lennox International Inc's payables turnover has shown a positive trend over the past five years. The company's ability to efficiently manage its accounts payable has improved consistently, with the payables turnover ratio increasing from 7.32 in 2019 to 9.16 in 2023. This indicates that Lennox International Inc is taking fewer days to pay its suppliers, reflecting better liquidity management and potentially stronger supplier relationships. The rising payables turnover suggests that Lennox International Inc is effectively utilizing its credit terms with suppliers to optimize its working capital and cash flow position.
Peer comparison
Dec 31, 2023