TE Connectivity Ltd (TEL)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,431,000 | 13,096,000 | 12,950,000 | 11,949,000 | 11,168,000 |
| Payables | US$ in thousands | 1,728,000 | 1,563,000 | 1,593,000 | 1,911,000 | 1,276,000 |
| Payables turnover | 7.19 | 8.38 | 8.13 | 6.25 | 8.75 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $12,431,000K ÷ $1,728,000K
= 7.19
TE Connectivity Ltd's payables turnover ratio has displayed fluctuations over the past five years. The ratio stood at 7.19 in 2024, a decrease from 8.38 in 2023 and 8.13 in 2022. Prior to that, in 2021, the ratio was 6.25, and in 2020, it was 8.75.
A higher payables turnover ratio generally indicates that the company is paying off its suppliers more quickly, which could be a sign of efficient working capital management or good creditor relationships. On the other hand, a lower ratio could suggest that the company is taking longer to pay its suppliers, which may have implications for supplier relationships and cash flow management.
The decreasing trend in TE Connectivity Ltd's payables turnover ratio from 2020 to 2024 may indicate a change in the company's payment practices towards suppliers. Further analysis of the company's financial statements and industry benchmarks would be beneficial in understanding the underlying reasons for these fluctuations and evaluating the effectiveness of the company's working capital management strategies.
Peer comparison
Sep 30, 2024