Materion Corporation (MTRN)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 71,120 | -113,159 | -115,383 | -113,087 |
| Payables | US$ in thousands | 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 | 43,206 | 43,675 | 41,658 | 56,586 |
| Payables turnover | 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 | 1.65 | -2.59 | -2.77 | -2.00 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,503,033K ÷ $125,663K
= 11.96
The payables turnover ratio is a financial ratio that measures how efficiently Materion Corp is managing its trade credit payables by comparing the company's cost of goods sold to its average accounts payable balance. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which may be a favorable sign of strong working capital management or good supplier relationships.
Based on the data provided, Materion Corp's payables turnover ratio has fluctuated over the past eight quarters. In Q3 2022, the company had the highest payables turnover ratio of 14.52, indicating that, on average, Materion Corp paid its suppliers 14.52 times during that quarter. This decrease in Q4 2022 to 13.10 may suggest a slight decline in the frequency of payments to suppliers.
The payables turnover ratio increased to 14.08 in Q3 2023, which indicates a potential improvement in the company's ability to manage its trade credit payables compared to the previous quarter. However, this was followed by a decrease in Q4 2023 to 10.47, which could suggest that Materion Corp is now taking longer to pay its suppliers on average.
Overall, Materion Corp's payables turnover ratio has shown some variability over the analyzed period. Further analysis and comparison with industry benchmarks would be needed to determine the effectiveness of the company's payables management and its impact on financial performance.