Pentair PLC (PNR)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,300,800 | 3,334,700 | 3,568,700 | 3,049,400 | 2,494,800 |
| Payables | US$ in thousands | 272,800 | 278,900 | 355,000 | 385,700 | 245,100 |
| Payables turnover | 12.10 | 11.96 | 10.05 | 7.91 | 10.18 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,300,800K ÷ $272,800K
= 12.10
The payables turnover ratio measures how efficiently a company is managing its accounts payable. Looking at the data provided, Pentair PLC's payables turnover has experienced fluctuations over the past five years.
In 2020, the payables turnover was 10.18, indicating that on average, Pentair was paying off its suppliers over 10 times during that year. However, this ratio decreased to 7.91 in 2021, suggesting a potential slowdown in the speed at which the company was paying its suppliers.
The trend reversed in the following years, with a noticeable increase in the payables turnover ratio. By the end of 2024, the ratio had climbed to 12.10, reflecting a significant improvement in Pentair's ability to manage its payables efficiently.
Overall, Pentair PLC has shown fluctuations in its payables turnover ratio over the analyzed period, with a notable improvement in recent years. This trend indicates that the company has been able to optimize its accounts payable management, potentially enhancing its cash flow and relationships with suppliers.
Peer comparison
Dec 31, 2024