Materion Corporation (MTRN)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,605,750 | 1,503,030 | 1,610,150 | 1,407,620 | 1,158,240 |
| Payables | US$ in thousands | 105,901 | 125,663 | 107,899 | 86,243 | 55,640 |
| Payables turnover | 15.16 | 11.96 | 14.92 | 16.32 | 20.82 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,605,750K ÷ $105,901K
= 15.16
The payables turnover ratio for Materion Corporation has exhibited a declining trend over the period from December 31, 2020, to December 31, 2024. The ratio decreased from 20.82 in 2020 to 15.16 in 2024.
A high payables turnover ratio indicates that a company is efficiently managing its payables by quickly paying off its suppliers. Conversely, a declining ratio could suggest that Materion Corporation is taking longer to pay its suppliers, which may strain relationships or result in missed discounts for early payment.
It is important for Materion Corporation to closely monitor its payables turnover ratio to ensure it strikes a balance between maintaining good supplier relationships and managing its cash flow effectively. They may need to implement strategies to better manage payables, such as negotiating better terms with suppliers or improving internal processes for invoice processing and payment.