Newell Brands Inc (NWL)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,328,000 | 9,151,000 | 9,683,000 | 10,087,000 | 10,216,400 |
| Payables | US$ in thousands | 1,003,000 | 1,062,000 | 1,680,000 | 1,526,000 | 1,102,000 |
| Payables turnover | 8.30 | 8.62 | 5.76 | 6.61 | 9.27 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,328,000K ÷ $1,003,000K
= 8.30
The payables turnover ratio for Newell Brands Inc has shown some fluctuation over the past five years. In 2023, the company's payables turnover ratio decreased to 5.76 compared to the previous year's ratio of 6.24. This suggests that the company took longer to pay its suppliers in 2023.
Compared to 2021 and 2020, where the ratios were 4.34 and 4.13 respectively, the 2023 ratio indicates an improvement in managing payables. However, it is slightly lower than the 2019 ratio of 5.90, indicating a longer payment cycle in 2023 compared to that year.
Overall, the payables turnover ratio for Newell Brands Inc has experienced variability, but the recent decrease in the ratio may indicate a need for the company to potentially optimize its payables management and payment processes to ensure efficient working capital management.
Peer comparison
Dec 31, 2023