Owens Corning Inc (OC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,217,000 | 7,389,000 | 6,459,000 | 6,528,000 | 5,551,000 |
| Payables | US$ in thousands | 1,216,000 | 1,345,000 | 1,095,000 | 875,000 | 815,000 |
| Payables turnover | 5.94 | 5.49 | 5.90 | 7.46 | 6.81 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,217,000K ÷ $1,216,000K
= 5.94
Owens Corning's payables turnover ratio has fluctuated over the past five years. The ratio was 5.75 in 2023, compared to 5.31 in 2022. This indicates that in 2023, Owens Corning paid its suppliers approximately 5.75 times during the year, which is an improvement from the previous year.
Compared to 2021 and 2020, where the payables turnover ratios were 5.74 and 6.22 respectively, the company's efficiency in paying its suppliers decreased in 2023. Additionally, the payables turnover ratio has been gradually declining since 2019 when it was 6.81. This downward trend suggests that Owens Corning may be taking longer to pay its suppliers, which could have implications for its relationships with vendors and cash flow management.
Overall, while the payables turnover ratio for Owens Corning in 2023 improved from the previous year, the downward trend over the past five years warrants further investigation into the company's payment practices and cash flow management strategies.