Owens Corning Inc (OC)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,006,000 | 5,825,000 | 5,439,000 | 5,328,000 | 5,450,000 | 5,401,000 | 5,485,000 | 5,541,000 | 5,526,000 | 6,632,000 | 6,413,000 | 6,167,000 | 5,911,000 | 5,653,000 | 5,463,000 | 5,124,000 | 4,948,000 | 5,313,000 | 5,308,000 | 5,504,000 |
| Payables | US$ in thousands | 1,430,000 | 1,401,000 | 1,403,000 | 1,177,000 | 1,216,000 | 1,161,000 | 1,201,000 | 1,243,000 | 1,345,000 | 1,320,000 | 1,327,000 | 1,328,000 | 1,095,000 | — | — | — | 875,000 | — | — | — |
| Payables turnover | 5.60 | 4.16 | 3.88 | 4.53 | 4.48 | 4.65 | 4.57 | 4.46 | 4.11 | 5.02 | 4.83 | 4.64 | 5.40 | — | — | — | 5.65 | — | — | — |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,006,000K ÷ $1,430,000K
= 5.60
Owens Corning Inc's payables turnover has exhibited fluctuating trends over the past few years. The ratio, which indicates how efficiently the company is managing its accounts payable, was not available in the financial statements for most quarters in 2020 and 2021.
Starting from December 31, 2021, the payables turnover stood at 5.40, implying that the company turned over its accounts payable approximately 5.40 times during that period. Subsequently, the ratio decreased to 4.64 on March 31, 2022, showing a potential slowdown in the rate of payment to creditors.
However, in the following quarters, the payables turnover ratio improved, reaching a peak of 5.60 on December 31, 2024. This suggests that Owens Corning Inc enhanced its ability to settle its accounts payable more frequently, which could be indicative of better liquidity management or negotiation with suppliers.
Overall, the varying levels of the payables turnover ratio reflect changes in Owens Corning Inc's payment practices and relationships with creditors over the analyzed period. Further analysis of the company's financial performance and working capital management may provide additional insights into its operational efficiency and financial health.