Newmont Goldcorp Corp (NEM)
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 | 9,299,000 | 8,333,000 | 8,422,000 | 8,546,000 | 8,470,000 | 7,282,000 | 7,104,000 | 6,681,000 | 6,492,000 | 5,835,000 | 5,730,000 | 5,502,000 | 4,259,000 | 2,873,000 | 1,651,000 | 629,000 | 657,000 | 617,000 | 913,000 | 919,000 |
| Payables | US$ in thousands | 960,000 | 651,000 | 565,000 | 648,000 | 633,000 | 570,000 | 583,000 | 491,000 | 518,000 | 498,000 | 503,000 | 446,000 | 493,000 | 418,000 | 473,000 | 509,000 | 539,000 | 532,000 | 460,000 | 287,000 |
| Payables turnover | 9.69 | 12.80 | 14.91 | 13.19 | 13.38 | 12.78 | 12.19 | 13.61 | 12.53 | 11.72 | 11.39 | 12.34 | 8.64 | 6.87 | 3.49 | 1.24 | 1.22 | 1.16 | 1.98 | 3.20 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $9,299,000K ÷ $960,000K
= 9.69
The payables turnover ratio measures how efficiently a company is managing its payables by calculating how many times the company pays off its average accounts payable balance during a specific period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently.
In the case of Newmont Corp, the payables turnover ratio has fluctuated over the past eight quarters. In Q4 2023, the payables turnover ratio stood at 6.98, which was lower compared to the previous quarter's ratio of 9.49. This suggests that Newmont Corp took longer to pay off its suppliers in Q4 2023.
Furthermore, the payables turnover ratio in Q4 2023 was also lower than the ratios recorded in the corresponding quarter of the previous year, Q4 2022, which was 10.22. This could indicate a potential deterioration in the company's ability to efficiently manage its payables compared to the same time last year.
Overall, a decreasing trend in the payables turnover ratio may raise concerns about Newmont Corp's liquidity and supplier relationships. Further analysis and comparison with industry benchmarks would provide additional insights into the company's payables management efficiency.