PPG Industries Inc (PPG)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,821,000 | 15,793,000 | 14,809,000 | 11,989,000 | 13,038,000 |
| Payables | US$ in thousands | 2,612,000 | 2,538,000 | 2,734,000 | 2,259,000 | 2,098,000 |
| Payables turnover | 6.06 | 6.22 | 5.42 | 5.31 | 6.21 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $15,821,000K ÷ $2,612,000K
= 6.06
The payables turnover ratio for PPG Industries, Inc. has shown a fluctuating trend over the past five years. The ratio decreased from 4.12 in 2019 to 3.44 in 2020, indicating a longer period taken by the company to pay its suppliers. However, there was a notable improvement in 2021 with the ratio increasing to 3.76, suggesting a quicker turnover of payables.
In 2022, the payables turnover ratio further improved to 4.37, indicating that the company was managing its accounts payables more efficiently by paying its suppliers more frequently within a year. The ratio slightly decreased to 4.11 in 2023, but it still remained at a relatively high level compared to previous years.
Overall, the increasing trend in the payables turnover ratio in recent years reflects positively on PPG Industries' ability to effectively manage its payable obligations, possibly by negotiating better payment terms with suppliers or optimizing its working capital management.
Peer comparison
Dec 31, 2023