Resideo Technologies Inc (REZI)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,306,000 | 5,364,000 | 5,419,000 | 5,473,000 | 5,668,000 | 5,564,000 | 5,439,000 | 5,301,000 | 5,268,000 | 5,317,000 | 5,268,000 | 4,727,000 | 4,331,000 | 4,209,000 | 4,145,000 | 4,612,000 | 4,864,000 | 4,498,000 | 4,374,000 | |
| Payables | US$ in thousands | 905,000 | 863,000 | 948,000 | 894,000 | 894,000 | 936,000 | 987,000 | 958,000 | 883,000 | 905,000 | 915,000 | 908,000 | 936,000 | 858,000 | 811,000 | 906,000 | 920,000 | 932,000 | 1,009,000 | 1,013,000 |
| Payables turnover | 5.86 | 6.22 | 5.72 | 6.12 | 6.34 | 5.94 | 5.51 | 5.53 | 5.97 | 5.88 | 5.76 | 5.21 | 4.63 | 4.91 | 5.11 | 5.09 | 5.29 | 4.83 | 4.33 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,306,000K ÷ $905,000K
= 5.86
Payables turnover measures how efficiently a company manages its accounts payable. The higher the payables turnover ratio, the faster the company is paying off its suppliers. Resideo Technologies Inc's payables turnover has shown some fluctuation in recent quarters, ranging from 4.49 to 5.28.
In Q3 2023, there was a peak in the payables turnover ratio at 5.28, indicating that the company was able to convert its accounts payable into cash relatively faster compared to other quarters. This may suggest effective management of vendor relationships or improved working capital management during that period.
However, in Q2 2023, the payables turnover ratio decreased to 4.86, which could indicate a slowdown in payment to suppliers or potentially a change in the company's payment policies.
Overall, the payables turnover ratio for Resideo Technologies Inc has generally been above 4.5, which suggests that the company has been efficiently managing its payables and maintaining good relationships with its suppliers. Monitoring this ratio over time can provide insights into the company's liquidity and operational efficiency.