Pentair PLC (PNR)
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 | 2,671,800 | 2,697,700 | 2,734,500 | 2,756,100 | 2,775,800 | 2,924,200 | 2,994,200 | 3,015,900 | 3,036,500 | 2,891,700 | 2,819,100 | 2,714,500 | 2,597,800 | 2,448,100 | 2,334,800 | 2,202,900 | 2,110,600 | 1,928,700 | 1,866,200 | 1,910,800 |
| Payables | US$ in thousands | 272,800 | 286,400 | 295,000 | 308,800 | 278,900 | 286,100 | 329,700 | 331,300 | 355,000 | 372,000 | 372,500 | 396,800 | 385,700 | 342,500 | 315,300 | 297,100 | 245,100 | 276,600 | 256,000 | 268,200 |
| Payables turnover | 9.79 | 9.42 | 9.27 | 8.93 | 9.95 | 10.22 | 9.08 | 9.10 | 8.55 | 7.77 | 7.57 | 6.84 | 6.74 | 7.15 | 7.41 | 7.41 | 8.61 | 6.97 | 7.29 | 7.12 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,671,800K ÷ $272,800K
= 9.79
The payables turnover ratio for Pentair PLC has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times a company pays off its average accounts payable balance in a period.
From the data provided, we observe a general fluctuation in the payables turnover ratio, with some periods showing an increase and others a decrease. For example, the ratio increased from December 31, 2020 (8.61) to March 31, 2021 (7.41), indicating a slower turnover of payables in the latter period. Subsequently, the ratio increased again to 9.10 by March 31, 2023, showing improved efficiency in paying off accounts payable during that period.
The highest payables turnover ratio was seen on December 31, 2023 (9.95), indicating that, on average, Pentair PLC paid off its accounts payable close to 10 times during that year. This could signify efficient management of payables or potentially improved relationships with suppliers.
However, by the end of the period on December 31, 2024, the payables turnover ratio had decreased slightly to 9.79, which could be an indication that the company took longer to pay off its suppliers compared to the prior period.
Overall, fluctuations in the payables turnover ratio can be influenced by various factors such as changes in payment terms with suppliers, company's cash flow position, and overall management of working capital. Tracking this ratio over time can provide insights into Pentair PLC's efficiency in managing its accounts payable.
Peer comparison
Dec 31, 2024