PHINIA Inc. (PHIN)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,045,000 | 2,972,000 | 2,897,000 |
| Payables | US$ in thousands | 522,000 | 588,000 | 612,000 |
| Payables turnover | 5.83 | 5.05 | 4.73 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,045,000K ÷ $522,000K
= 5.83
The payables turnover ratio measures how efficiently a company is managing its payables. In the case of PHINIA Inc., the payables turnover has been consistently increasing over the year, from 4.73 in March 31, 2024, to 5.05 in September 30, 2024, and finally reaching 5.83 by December 31, 2024.
This upward trend indicates that PHINIA Inc. is taking fewer days to pay its suppliers, which could be a positive sign of strong supplier relationships or effective cash flow management. A higher payables turnover ratio suggests that the company is able to pay off its payables more quickly, potentially improving its working capital efficiency.
Overall, the increasing payables turnover ratio for PHINIA Inc. reflects a favorable ability to manage its payables effectively and efficiently over the specified period.
Peer comparison
Dec 31, 2024