TE Connectivity Ltd (TEL)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,096,000 | 12,950,000 | 11,949,000 | 11,168,000 | 10,979,000 |
| Payables | US$ in thousands | 1,563,000 | 1,593,000 | 1,911,000 | 1,276,000 | 1,357,000 |
| Payables turnover | 8.38 | 8.13 | 6.25 | 8.75 | 8.09 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $13,096,000K ÷ $1,563,000K
= 8.38
TE Connectivity Ltd has demonstrated a fluctuating trend in its payables turnover ratio over the past five years. The payables turnover ratio measures how efficiently a company is managing its trade payables.
In the most recent year, as of September 30, 2023, the payables turnover ratio stood at 8.38, indicating that the company paid off its trade payables approximately 8.38 times during that year. This represents an increase from the previous year's ratio of 8.13.
Comparing the current ratio to the historical data, we observe that TE Connectivity's payables turnover has varied over the years. The highest payables turnover ratio was recorded in September 2020 at 8.75, while the lowest was in September 2021 at 6.25.
Overall, the company's ability to manage its trade payables efficiently has improved in the most recent year, as reflected by the increase in the payables turnover ratio. This indicates that TE Connectivity is paying off its suppliers at a faster rate, which could potentially lead to improved liquidity and relationships with suppliers.
Peer comparison
Sep 30, 2023