Sherwin-Williams Co (SHW)
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 | 19,559,700 | 19,636,500 | 19,720,400 | 19,588,600 | 19,215,600 | 18,924,300 | 18,303,000 | 17,764,600 | 17,284,300 | 16,825,300 | 16,535,300 | 15,821,100 | 15,514,700 | 13,803,700 | 12,282,000 | 11,205,020 | 9,864,700 | 10,025,840 | 10,104,810 | 10,143,560 |
| Payables | US$ in thousands | 2,315,000 | 2,424,800 | 2,489,700 | 2,513,600 | 2,436,500 | 2,808,400 | 2,992,900 | 2,860,800 | 2,403,000 | 2,675,400 | 2,502,800 | 2,217,000 | 2,117,800 | 2,056,200 | 1,848,400 | 1,958,400 | 1,876,300 | 2,028,400 | 2,067,900 | 1,894,000 |
| Payables turnover | 8.45 | 8.10 | 7.92 | 7.79 | 7.89 | 6.74 | 6.12 | 6.21 | 7.19 | 6.29 | 6.61 | 7.14 | 7.33 | 6.71 | 6.64 | 5.72 | 5.26 | 4.94 | 4.89 | 5.36 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $19,559,700K ÷ $2,315,000K
= 8.45
The payables turnover ratio measures how efficiently a company is managing its accounts payable by showing how many times a company pays off its suppliers during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, potentially taking advantage of early payment discounts or managing its cash flow effectively.
Looking at the data provided for Sherwin-Williams Co., we can see that the payables turnover ratio has been relatively stable over the past eight quarters, ranging from 4.10 to 5.31. Generally, an increasing trend in the payables turnover ratio can indicate that the company is improving its payment efficiency and possibly negotiating better terms with its suppliers.
In this case, the payables turnover ratio for Sherwin-Williams Co. has shown a slight improvement in the most recent quarter, reaching 5.31 compared to the previous quarter's 5.19. This suggests that the company may be managing its accounts payable more effectively.
Overall, the consistent and relatively high payables turnover ratio of Sherwin-Williams Co. indicates that the company is efficiently managing its payments to suppliers, which can be a positive sign of effective financial management.
Peer comparison
Dec 31, 2023