NewMarket Corporation (NEU)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,081,430 | 2,273,600 | 1,959,330 | 1,564,720 | 1,715,440 |
| Payables | US$ in thousands | 231,137 | 273,289 | 246,097 | 189,937 | 178,773 |
| Payables turnover | 9.01 | 8.32 | 7.96 | 8.24 | 9.60 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,081,430K ÷ $231,137K
= 9.01
Over the past five years, NewMarket Corp.'s payables turnover ratio has exhibited some fluctuations. The payables turnover ratio measures how efficiently a company manages its accounts payable by showing how many times a company pays off its accounts payable during a period.
In 2023, the payables turnover ratio increased to 8.33, indicating that NewMarket Corp. was able to pay off its accounts payable 8.33 times during the year. This could mean that the company was able to manage its payables more effectively and efficiently compared to the previous year.
Comparing 2023 to 2022, the increase in the payables turnover ratio suggests that NewMarket Corp. may have negotiated better terms with its suppliers, reduced its outstanding payables, or improved its cash flow management.
Overall, the trend in NewMarket Corp.'s payables turnover ratio shows a general improvement in managing its accounts payable turnover, which is a positive sign of efficient working capital management.
Peer comparison
Dec 31, 2023