Ingevity Corp (NGVT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,612,400 | 1,335,600 | 1,091,900 | 944,600 | 1,029,600 |
| Payables | US$ in thousands | 158,400 | 174,800 | 125,800 | 104,200 | 99,100 |
| Payables turnover | 10.18 | 7.64 | 8.68 | 9.07 | 10.39 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,612,400K ÷ $158,400K
= 10.18
Based on the data provided, Ingevity Corp's payables turnover has fluctuated over the past five years. The company's payables turnover ratio was 7.70 in 2023, an increase from 6.28 in 2022 but lower compared to 2020 and 2019. This indicates that in 2023, Ingevity Corp paid its suppliers approximately 7.70 times during the year, suggesting efficient management of its accounts payable.
While the increase from the previous year is positive, a declining trend from 2019 may warrant further investigation into the company's payment practices and supplier relationships. Overall, a payables turnover ratio of 7.70 signifies that Ingevity Corp is effectively managing its payable obligations, but analysis over multiple years is recommended for better insight into the company's payment efficiency and liquidity management.
Peer comparison
Dec 31, 2023