NOV Inc. (NOV)

Payables turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 6,750,000 5,903,000 4,750,000 5,656,000 7,634,000
Payables US$ in thousands 904,000 906,000 612,000 489,000 715,000
Payables turnover 7.47 6.52 7.76 11.57 10.68

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $6,750,000K ÷ $904,000K
= 7.47

The payables turnover ratio measures how many times a company pays off its accounts payable during a specific period. NOV Inc's payables turnover has fluctuated in recent years. In 2023, the payables turnover ratio was 7.47, indicating that the company paid off its accounts payable approximately 7.47 times during the year. This is an increase from 2022 when the ratio was 6.52. A higher payables turnover ratio suggests a more efficient management of accounts payable and indicates that the company is paying off its suppliers more frequently. However, it's important to note that the ratio has decreased compared to 2021 and 2020, possibly indicating a change in the company's payment practices or supplier relationships. Overall, the trend in NOV Inc's payables turnover ratio should be further analyzed in conjunction with other financial indicators to provide a comprehensive assessment of the company's financial health.


Peer comparison

Dec 31, 2023


See also:

NOV Inc. Payables Turnover