SPX Corp (SPXC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,516,600 | 1,324,000 | 1,120,500 | 1,418,000 | 1,416,400 |
| Payables | US$ in thousands | 118,700 | 124,500 | 119,600 | 102,100 | 141,200 |
| Payables turnover | 12.78 | 10.63 | 9.37 | 13.89 | 10.03 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,516,600K ÷ $118,700K
= 12.78
The payables turnover ratio for SPX Corp has exhibited fluctuations over the past five years. In 2023, the payables turnover ratio stood at 12.78, indicating that the company paid off its accounts payable approximately 12.78 times during the year. This represents an improvement compared to the prior year when the ratio was 10.63.
The increasing trend in payables turnover from 2021 to 2023 suggests that SPX Corp has been managing its accounts payable more efficiently. A higher payables turnover ratio can indicate that the company is paying its suppliers more quickly, which can be beneficial in terms of maintaining good relationships with vendors and taking advantage of any early payment discounts.
However, it is important to note that a very high payables turnover ratio may also indicate aggressive practices that could strain relationships with suppliers. Therefore, it is essential for SPX Corp to strike a balance between managing payables effectively and maintaining strong supplier relationships for the long-term sustainability of the business.
Peer comparison
Dec 31, 2023