Ingevity Corp (NGVT)
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 | 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 | 1,029,600 | 1,017,900 | 977,200 | 941,300 |
| Payables | US$ in thousands | 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 | 99,100 | 107,500 | 114,700 | 119,800 |
| Payables turnover | 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 | 10.39 | 9.47 | 8.52 | 7.86 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,612,300K ÷ $158,400K
= 10.18
Payables turnover is an important financial ratio that measures how efficiently a company manages its accounts payable. It indicates how many times a company pays off its suppliers in a given period. A higher payables turnover ratio is generally favorable as it suggests that a company is paying its suppliers quickly.
In the case of Ingevity Corp, the payables turnover ratio has fluctuated over the past eight quarters. In Q4 2023, the payables turnover ratio was 7.70, showing an improvement compared to the previous quarter of 6.01. This indicates that Ingevity Corp has been able to pay off its suppliers at a faster rate in Q4 2023.
However, it is important to note that the payables turnover ratio can vary depending on the industry and company practices. It is also essential to consider other financial ratios and factors when analyzing a company's financial performance comprehensively. Overall, an increasing trend in the payables turnover ratio for Ingevity Corp could indicate efficient management of accounts payable and a strong financial position.
Peer comparison
Dec 31, 2023