Materion Corporation (MTRN)

Payables turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cost of revenue (ttm) US$ in thousands 1,147,597 1,529,855 1,492,128 1,461,202 1,503,033 1,504,320 1,535,662 1,585,759 1,610,153 1,596,536 1,134,202 661,931 175,193 82,157 114,693 142,908 171,848 113,635 102,900 88,340
Payables US$ in thousands 105,901 130,310 117,269 134,542 125,663 93,096 123,862 126,866 107,899 96,482 113,708 103,438 86,243 71,576 80,600 72,489 55,640 56,524 52,093 54,145
Payables turnover 10.84 11.74 12.72 10.86 11.96 16.16 12.40 12.50 14.92 16.55 9.97 6.40 2.03 1.15 1.42 1.97 3.09 2.01 1.98 1.63

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,147,597K ÷ $105,901K
= 10.84

The payables turnover ratio of Materion Corporation has shown some fluctuations over the past five years, reflecting changes in the company's ability to manage its accounts payable effectively.

From March 31, 2020, to December 31, 2021, the payables turnover ratio ranged between 1.15 and 3.09, indicating some volatility in the management of payables during this period. It reached its peak of 3.09 in December 31, 2020, signifying that the company was paying off its suppliers more frequently or rapidly during that period.

In the subsequent period from March 31, 2022, to December 31, 2024, the payables turnover ratio demonstrated a significant upward trend, showing a consistent improvement in managing its payables. The ratio increased from 6.40 on March 31, 2022, to 10.84 on December 31, 2024. This steady increase suggests that Materion Corporation was taking longer to pay off its suppliers, which could indicate improved negotiation terms or better cash flow management.

Overall, the fluctuations seen in Materion Corporation's payables turnover ratio highlight the importance of effectively managing accounts payable to optimize cash flow and maintain good relationships with suppliers. A higher payables turnover ratio indicates that the company is efficiently managing its payables, while a lower ratio may suggest inefficiencies in managing supplier payments.