Smurfit WestRock plc (SW)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,485,000 | 8,752,000 | 7,015,000 | 5,656,000 |
| Payables | US$ in thousands | — | — | — | — |
| Payables turnover | — | — | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,485,000K ÷ $—K
= —
To calculate Smurfit WestRock plc's payables turnover for each year, we can use the formula:
Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Given that the data for Accounts Payable is not provided in the table, let's assume that the opening and closing balances for each year can be used to estimate the average Accounts Payable.
Once we have the average Accounts Payable calculated, we can then proceed to compute the payables turnover for each year.
Understanding the payables turnover ratio is crucial as it measures how efficiently a company is managing its payments to suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly, which may suggest good liquidity management but could also signal issues with supplier relationships. On the other hand, a lower payables turnover ratio could indicate a slower payment process, potentially signaling cash flow challenges or strained supplier relationships.
Analyzing Smurfit WestRock plc's payables turnover over multiple years can provide insights into changes in the company's payment practices and relationships with suppliers. Further analysis and comparison with industry benchmarks would also be valuable to assess the company's performance in managing its payables effectively.
Peer comparison
Dec 31, 2023