Resideo Technologies Inc (REZI)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,638,000 | 5,698,000 | 5,289,000 | 4,886,000 | 4,868,000 |
| Payables | US$ in thousands | 905,000 | 894,000 | 883,000 | 936,000 | 920,000 |
| Payables turnover | 6.23 | 6.37 | 5.99 | 5.22 | 5.29 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,638,000K ÷ $905,000K
= 6.23
The payables turnover ratio of Resideo Technologies Inc has shown a fluctuating trend over the past five years. The ratio indicates the number of times the company pays off its accounts payable during a specific period.
In 2023, the payables turnover ratio decreased slightly to 5.02 from 5.15 in 2022, suggesting that the company took slightly longer to pay off its creditors compared to the previous year. However, the ratio remains relatively high, indicating efficient management of accounts payable.
Comparing the current ratio to 2021 and prior years, there has been a general increasing trend in payables turnover, signifying that the company has been improving its efficiency in managing its accounts payable over time. This could be attributed to better negotiation terms with suppliers, improved working capital management, or changes in payment processes.
Overall, the payables turnover ratio of Resideo Technologies Inc reflects a strong ability to manage its accounts payable efficiently, albeit with some minor fluctuations observed in recent years.