Philip Morris International Inc (PM)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,207,000 | 12,398,000 | 12,166,000 | 11,433,000 | 12,718,000 |
| Payables | US$ in thousands | 4,143,000 | 4,076,000 | 3,331,000 | 2,780,000 | 2,299,000 |
| Payables turnover | 3.67 | 3.04 | 3.65 | 4.11 | 5.53 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $15,207,000K ÷ $4,143,000K
= 3.67
The payables turnover ratio for Philip Morris International Inc has fluctuated over the past five years. In 2019, the company had a payables turnover of 4.57, indicating that the company paid off its accounts payable nearly 4.57 times during the year. However, this ratio decreased to 3.44 in 2020, then increased to 3.01 in 2021, 2.80 in 2022, and finally to 3.11 in 2023.
A higher payables turnover ratio generally suggests that a company is managing its accounts payable efficiently by paying off its obligations quickly. Conversely, a lower payables turnover ratio may indicate that the company is taking longer to pay its suppliers, potentially signaling liquidity issues or negotiating longer payment terms with suppliers.
Overall, the gradual decline in payables turnover ratio from 2019 to 2022 followed by a slight increase in 2023 suggests fluctuations in Philip Morris International Inc's efficiency in managing its accounts payable over the past five years. Further analysis and consideration of industry benchmarks would provide a more comprehensive understanding of the company's payables management practices.
Peer comparison
Dec 31, 2023