Teledyne Technologies Incorporated (TDY)

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	4,282,700	4,267,000	4,247,400	4,205,100	4,542,400	4,627,300	4,631,300	4,521,700	4,080,900	3,493,500	2,997,300	2,613,800	2,634,000	2,659,500	2,707,800	2,725,600	2,691,500	2,626,800	2,571,600	2,541,200
Payables	US$ in thousands	384,700	454,900	459,400	495,000	505,700	499,500	483,000	496,100	469,500	427,600	399,600	249,900	229,100	216,600	245,000	263,400	271,100	244,900	221,700	227,300
Payables turnover		11.13	9.38	9.25	8.50	8.98	9.26	9.59	9.11	8.69	8.17	7.50	10.46	11.50	12.28	11.05	10.35	9.93	10.73	11.60	11.18

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,282,700K ÷ $384,700K
= 11.13

Teledyne Technologies Inc's payables turnover ratio has shown a generally increasing trend over the past four quarters, indicating a more efficient management of its accounts payable. The Q4 2023 payables turnover ratio of 8.31 suggests that the company is able to convert its accounts payable into purchases and services more than eight times within the year. This improvement can be seen from the Q1 2022 payables turnover ratio of 6.11, showing an increase in the speed at which the company pays off its suppliers.

A higher payables turnover ratio is generally a positive indicator, as it signifies that Teledyne Technologies Inc is effectively managing its working capital by paying its suppliers in a timely manner. This can lead to better relationships with suppliers and potentially favorable credit terms in the future.

However, it is important to note that a very high payables turnover ratio may also indicate that the company is paying off its suppliers too quickly, potentially leading to missed early payment discounts or straining supplier relationships. Therefore, it is essential for Teledyne Technologies Inc to strike a balance in managing its payables turnover to ensure optimal working capital management.