Stanley Black & Decker Inc (SWK)
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 | 15,442,900 | 14,472,900 | 13,612,200 | 12,617,000 | 12,663,300 | 12,284,900 | 11,747,500 | 10,998,700 | 10,189,100 | 9,932,600 | 9,624,700 | 9,107,400 | 8,652,300 | 8,607,500 | 8,744,900 | 9,286,600 | 9,636,700 | 9,557,900 | 9,557,900 | 9,557,900 |
| Payables | US$ in thousands | 2,298,900 | 2,252,600 | 2,413,900 | 2,378,700 | 2,344,400 | 2,492,800 | 3,138,800 | 3,367,700 | 3,423,600 | 3,055,700 | 2,998,700 | 2,653,200 | 2,320,000 | 2,345,300 | 2,117,400 | 2,029,200 | 2,087,800 | 2,070,300 | 2,323,800 | 2,264,300 |
| Payables turnover | 6.72 | 6.42 | 5.64 | 5.30 | 5.40 | 4.93 | 3.74 | 3.27 | 2.98 | 3.25 | 3.21 | 3.43 | 3.73 | 3.67 | 4.13 | 4.58 | 4.62 | 4.62 | 4.11 | 4.22 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $15,442,900K ÷ $2,298,900K
= 6.72
The payables turnover ratio measures how efficiently a company is managing its trade payables by showing the number of 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, which can be a sign of strong liquidity and efficient working capital management.
Based on the data provided for Stanley Black & Decker Inc, the payables turnover ratio has fluctuated over the periods analyzed. The ratio has generally shown an increasing trend from 2019 to 2023, ranging from 2.98 to 6.72. This indicates an improvement in the company's ability to pay off its trade payables in a timely manner.
However, there were fluctuations observed within individual periods, suggesting some variability in the company's payment practices. It is important to further investigate the reasons behind these fluctuations to understand if there were any specific events or changes in the company's operations that could have influenced the payables turnover ratio.
Overall, a payables turnover ratio of 6.72 at the end of 2023 indicates that Stanley Black & Decker Inc has been managing its payables effectively and efficiently.
Peer comparison
Dec 31, 2023