Mettler-Toledo International Inc (MTD)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,547,020 | 1,611,670 | 1,546,380 | 1,284,150 | 1,267,440 |
| Payables | US$ in thousands | 210,411 | 252,538 | 272,911 | 175,801 | 185,592 |
| Payables turnover | 7.35 | 6.38 | 5.67 | 7.30 | 6.83 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,547,020K ÷ $210,411K
= 7.35
The payables turnover ratio for Mettler-Toledo International, Inc. has exhibited fluctuations over the past five years. The ratio increased from 6.83 in 2019 to 7.30 in 2020, before experiencing a slight decline to 5.67 in 2021. However, in the subsequent years, the ratio has shown an upward trend, reaching 6.38 in 2022 and further increasing to 7.35 in 2023.
A payables turnover ratio of 7.35 in 2023 implies that, on average, the company paid off its accounts payable 7.35 times during the year. This indicates that Mettler-Toledo International, Inc. is efficiently managing its accounts payable by quickly settling its obligations to suppliers or vendors. The increasing trend in the payables turnover ratio suggests that the company has been able to enhance its efficiency in managing its payables over the years.
Overall, the trend in Mettler-Toledo International, Inc.'s payables turnover ratio indicates effective management of its accounts payable, as the company is efficiently utilizing its working capital to meet its short-term obligations to suppliers.
Peer comparison
Dec 31, 2023