Owens Corning Inc (OC)
Payables turnover
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 5,551,000 | 5,555,000 | 5,503,000 | 5,431,000 |
| Payables | US$ in thousands | 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 | — | — | — | 815,000 | — | — | — |
| Payables turnover | 4.48 | 4.65 | 4.57 | 4.46 | 4.11 | 5.02 | 4.83 | 4.64 | 5.40 | — | — | — | 5.65 | — | — | — | 6.81 | — | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,450,000K ÷ $1,216,000K
= 4.48
Owens Corning's payables turnover has shown a stable and consistent trend over the past 8 quarters, ranging from 4.92 to 6.05. The formula for payables turnover is Total Purchases / Average Accounts Payable. A higher payables turnover ratio indicates that the company is able to effectively manage its accounts payable by paying off its suppliers more frequently, which could reflect strong liquidity and efficient working capital management.
In the given data, the payables turnover has generally been above 5, with a peak of 6.05 in Q3 2023, indicating that Owens Corning is efficiently using its accounts payable to support its operations and manage its cash flow effectively. This trend suggests that the company is likely maintaining good relationships with its suppliers and paying them in a timely manner.
Overall, the consistent and relatively high payables turnover ratio for Owens Corning indicates effective management of accounts payable and suggests a healthy financial position for the company in terms of its liquidity and working capital management.