Ingevity Corp (NGVT)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,697,100 | 1,953,200 | 1,943,400 | 1,668,000 | 1,612,300 | 1,442,000 | 1,442,600 | 1,368,600 | 1,335,600 | 1,275,700 | 1,193,000 | 1,142,100 | 1,091,900 | 1,054,900 | 1,005,100 | 965,500 | 944,800 | 936,000 | 970,200 | 1,004,700 |
| Payables | US$ in thousands | 94,500 | 96,500 | 142,400 | 153,100 | 158,400 | 197,300 | 203,600 | 173,900 | 174,800 | 164,600 | 168,300 | 128,900 | 125,800 | 127,400 | 115,600 | 113,500 | 104,200 | 84,800 | 78,700 | 105,000 |
| Payables turnover | 17.96 | 20.24 | 13.65 | 10.89 | 10.18 | 7.31 | 7.09 | 7.87 | 7.64 | 7.75 | 7.09 | 8.86 | 8.68 | 8.28 | 8.69 | 8.51 | 9.07 | 11.04 | 12.33 | 9.57 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,697,100K ÷ $94,500K
= 17.96
The payables turnover ratio for Ingevity Corp shows how efficiently the company is managing its accounts payable by measuring how many times a company pays off its average accounts payable balance within a certain period.
Analyzing the data provided:
- The payables turnover ratio fluctuated over the analyzed period, starting at 9.57 on March 31, 2020, and reaching a peak of 20.24 on September 30, 2024.
- Generally, a higher payables turnover ratio indicates that the company is paying its suppliers more quickly, which can be beneficial in terms of maintaining good relationships with suppliers and potentially negotiating better credit terms.
- On the other hand, a low payables turnover ratio may indicate that the company is taking longer to pay its suppliers, potentially indicating cash flow issues or missed opportunities for early payment discounts.
It is important for stakeholders to monitor changes in the payables turnover ratio to understand how effectively Ingevity Corp is managing its accounts payable and its relationships with suppliers. Any significant fluctuations should be investigated further to determine the underlying reasons and implications for the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024