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