Mativ Holdings Inc. (MATV)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,080,100 | 2,143,700 | 1,377,000 | 956,900 | 896,000 |
| Payables | US$ in thousands | 139,300 | 180,600 | 116,000 | 60,500 | 66,400 |
| Payables turnover | 14.93 | 11.87 | 11.87 | 15.82 | 13.49 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,080,100K ÷ $139,300K
= 14.93
The payables turnover ratio of Mativ Holdings Inc has shown fluctuations over the past five years. The company's ability to manage its accounts payable efficiently has improved significantly from 2019 to 2020, with a ratio of 11.04 increasing to 12.66. However, there was a decrease in 2021 to 9.57, followed by an increase again in 2022 to 7.66, and a substantial improvement in 2023 to 11.99.
A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which can be a positive sign as it may suggest strong liquidity and good relationships with suppliers. However, a very high ratio could also raise questions about the company's ability to negotiate favorable payment terms.
The fluctuation in the payables turnover ratio should prompt further investigation into the company's supply chain management, vendor relationships, and cash flow management to understand the underlying reasons for these changes and determine their impact on the company's financial performance and stability.
Peer comparison
Dec 31, 2023