nVent Electric PLC (NVT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,707,200 | 2,414,600 | 2,066,800 | 1,934,400 | 1,844,600 |
| Payables | US$ in thousands | 275,700 | 252,100 | 261,000 | 171,100 | 187,100 |
| Payables turnover | 9.82 | 9.58 | 7.92 | 11.31 | 9.86 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,707,200K ÷ $275,700K
= 9.82
nVent Electric plc's payables turnover ratio has fluctuated over the past five years. The ratio indicates how efficiently the company is managing its accounts payable. A higher ratio typically signifies that the company is paying its suppliers more quickly.
In 2023, the payables turnover ratio was 6.97, slightly lower compared to 2022 and 2019. This decrease could indicate that nVent Electric plc took slightly longer to pay its suppliers in 2023.
However, it is important to note that the payables turnover ratio in 2023 is still relatively high, suggesting that the company is managing its accounts payable efficiently. Overall, nVent Electric plc's payables turnover ratio has shown some variability over the years, but the company appears to have a good grasp on managing its payables effectively.
Peer comparison
Dec 31, 2023