NOV Inc. (NOV)
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 | 6,750,000 | 6,534,000 | 6,338,000 | 6,120,000 | 5,903,000 | 5,588,000 | 5,223,000 | 4,991,000 | 4,750,000 | 4,828,000 | 4,917,000 | 5,090,000 | 5,656,000 | 6,168,000 | 6,898,000 | 7,609,000 | 7,634,000 | 7,718,000 | 7,504,000 | 7,185,000 |
| Payables | US$ in thousands | 904,000 | 925,000 | 1,007,000 | 961,000 | 906,000 | 774,000 | 754,000 | 643,000 | 612,000 | 519,000 | 526,000 | 467,000 | 489,000 | 476,000 | 556,000 | 662,000 | 715,000 | 716,000 | 695,000 | 679,000 |
| Payables turnover | 7.47 | 7.06 | 6.29 | 6.37 | 6.52 | 7.22 | 6.93 | 7.76 | 7.76 | 9.30 | 9.35 | 10.90 | 11.57 | 12.96 | 12.41 | 11.49 | 10.68 | 10.78 | 10.80 | 10.58 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,750,000K ÷ $904,000K
= 7.47
NOV Inc's payables turnover has shown some fluctuations over the past eight quarters. The payables turnover ratio represents how efficiently the company is managing its accounts payable by paying off its suppliers.
In Q4 2023, the payables turnover was 7.47, which indicates that NOV Inc pays off its suppliers approximately 7.47 times a year, or roughly every 49 days. This signifies a slight improvement compared to Q3 2023 when the ratio was 7.06.
Looking at the trend over the past eight quarters, there have been fluctuations in the payables turnover ratio. It hit a high of 7.76 in Q1 2022, possibly indicating a more efficient management of accounts payable during that period. However, there was a decrease in efficiency in Q2 and Q3 2023 with ratios of 6.29 and 6.93, respectively, before picking up in Q4 2023.
Overall, the data suggests that NOV Inc has been fairly consistent in managing its payables turnover, with some variations in efficiency over the quarters. It is important for the company to closely monitor this ratio to ensure optimal cash flow management and relationships with suppliers.
Peer comparison
Dec 31, 2023