Sensata Technologies Holding NV (ST)

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	2,792,825	2,764,368	2,770,944	2,725,439	2,712,048	2,658,096	2,592,483	2,564,165	2,542,434	2,532,496	2,433,829	2,187,987	2,119,044	2,065,586	2,090,241	2,253,033	2,267,433	2,254,514	2,257,938	2,265,212
Payables	US$ in thousands	482,301	515,095	523,968	529,941	531,572	501,301	537,261	486,432	459,093	427,271	473,932	431,084	393,907	319,424	250,219	345,787	376,968	365,823	378,504	366,407
Payables turnover		5.79	5.37	5.29	5.14	5.10	5.30	4.83	5.27	5.54	5.93	5.14	5.08	5.38	6.47	8.35	6.52	6.01	6.16	5.97	6.18

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,792,825K ÷ $482,301K
= 5.79

Sensata Technologies Holding Plc's payables turnover has shown fluctuation over the past eight quarters. The payables turnover ratio, which measures how efficiently the company is managing its outstanding supplier payments, was highest in Q4 2023 at 5.79 and lowest in Q2 2022 at 4.83.

Overall, the company has maintained a relatively stable payables turnover ratio, with the highest levels seen in the most recent quarters. This indicates that Sensata Technologies Holding Plc is efficiently managing its accounts payable by paying suppliers more frequently compared to the earlier quarters. A higher payables turnover ratio suggests that the company is effectively utilizing its trade credit terms and could negotiate favorable terms with its suppliers.

However, it is important to note that while a higher payables turnover ratio can be a positive indication of efficient working capital management, it could also potentially hint at strained relationships with suppliers if the company is aggressively pushing for shorter payment terms. Further analysis of the company's cash flow, liquidity position, and supplier relationships would provide a more comprehensive understanding of the implications of the payables turnover ratio fluctuations.