nVent Electric PLC (NVT)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,862,400 | 2,806,900 | 2,707,200 | 2,548,400 | 2,461,200 | 2,426,800 | 2,414,600 | 2,385,200 | 2,308,800 | 2,202,200 | 2,066,800 | 1,941,500 | 2,050,600 | 1,939,200 | 1,934,400 | 2,963,700 | 2,455,700 | 2,174,800 | 1,844,600 | 846,400 |
| Payables | US$ in thousands | 266,100 | 263,200 | 275,700 | 243,400 | 241,300 | 241,100 | 252,100 | 258,900 | 279,900 | 263,700 | 261,000 | 227,500 | 219,100 | 176,900 | 171,100 | 139,100 | 134,900 | 150,900 | 187,100 | 139,600 |
| Payables turnover | 10.76 | 10.66 | 9.82 | 10.47 | 10.20 | 10.07 | 9.58 | 9.21 | 8.25 | 8.35 | 7.92 | 8.53 | 9.36 | 10.96 | 11.31 | 21.31 | 18.20 | 14.41 | 9.86 | 6.06 |
June 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,862,400K ÷ $266,100K
= 10.76
nVent Electric PLC's payables turnover ratio has exhibited fluctuations over the past few quarters. The ratio has generally trended upwards from 6.06 in the first quarter of 2020 to a peak of 21.31 in the fourth quarter of 2020 before gradually decreasing to 10.76 in the second quarter of 2024.
A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently within a period. This could result from efficient management of payables and strong vendor relationships. On the other hand, a lower ratio may suggest that the company is taking longer to settle its payables, potentially leading to strained supplier relationships or missed discounts for early payment.
It is important to note that payables turnover ratios can be influenced by various factors such as industry norms, supplier agreements, and company policies. Therefore, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of nVent Electric PLC's payables management practices.
Peer comparison
Jun 30, 2024