Minerals Technologies Inc (MTX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,961,500 | 1,871,900 | 1,615,300 | 1,388,000 | 1,561,300 |
| Payables | US$ in thousands | 188,700 | 193,800 | 196,100 | 148,300 | 163,400 |
| Payables turnover | 10.39 | 9.66 | 8.24 | 9.36 | 9.56 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,961,500K ÷ $188,700K
= 10.39
The payables turnover ratio for Minerals Technologies, Inc. has shown fluctuations over the five-year period under review. The trend indicates that the company is managing its accounts payable efficiently, translating them into purchases or payments to suppliers at varying rates each year.
In 2023, the payables turnover ratio improved to 8.81, reflecting a faster rate of paying off suppliers compared to the previous year. This may signify better working capital management or stronger supplier relationships during the current fiscal period.
In contrast, 2021 saw a decrease in the payables turnover ratio to 7.20, indicating a slower rate of payments to suppliers compared to the preceding years. This could be a result of changes in operational or financial strategies during that particular year which influenced payment cycles.
While payables turnover ratios of 8.02 in 2020 and 8.26 in 2019 suggest efficient management of accounts payable during those years, the slight fluctuations indicate some variability in the company's payment practices over time.
Overall, the company's payables turnover ratio demonstrates a pattern of effectively managing its payables and supplier relationships, albeit with some variability from year to year.
Peer comparison
Dec 31, 2023