Rockwell Automation Inc (ROK)
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 | 7,729,600 | 7,586,000 | 7,057,700 | 6,841,300 | 6,569,700 | 6,487,200 | 6,321,800 | 6,234,200 | 6,091,700 | 5,816,000 | 5,556,800 | 5,246,100 | 5,150,600 | 5,239,600 | 5,359,800 | 5,446,300 | 5,445,800 | 5,346,200 | 4,920,800 | 4,578,300 |
| Payables | US$ in thousands | 935,000 | 1,150,200 | 1,009,100 | 992,400 | 1,034,500 | 1,028,000 | 989,200 | 932,100 | 851,300 | 889,800 | 890,200 | 806,200 | 721,100 | 687,800 | 667,000 | 742,500 | 708,300 | 694,600 | 629,900 | 660,900 |
| Payables turnover | 8.27 | 6.60 | 6.99 | 6.89 | 6.35 | 6.31 | 6.39 | 6.69 | 7.16 | 6.54 | 6.24 | 6.51 | 7.14 | 7.62 | 8.04 | 7.34 | 7.69 | 7.70 | 7.81 | 6.93 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $7,729,600K ÷ $935,000K
= 8.27
The payables turnover ratio indicates how efficiently a company manages its accounts payable by measuring the number of times a company pays off its suppliers during a specific period. Rockwell Automation Inc's payables turnover ratios over the past eight quarters have varied between 4.53 and 5.81.
A higher payables turnover ratio generally suggests that the company is efficiently managing its payments to suppliers, which can be a positive sign. Rockwell Automation Inc's payables turnover ratio has shown a generally increasing trend, reaching a peak of 5.81 in December 2023, indicating an improvement in its ability to settle its payables.
However, it's essential to consider the industry and company-specific factors when interpreting the payables turnover ratio. A high ratio may also imply that the company is paying its suppliers too quickly, potentially affecting cash flow and liquidity. Therefore, a thorough understanding of the company's operational and strategic decisions is necessary for a comprehensive analysis.
Peer comparison
Dec 31, 2023