TE Connectivity Ltd (TEL)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 12,431,000 | 12,446,000 | 12,583,000 | 12,882,000 | 13,096,000 | 13,373,000 | 13,391,000 | 13,126,000 | 12,950,000 | 12,439,000 | 12,204,000 | 12,035,000 | 11,949,000 | 11,725,000 | 11,030,000 | 11,528,000 | 11,168,000 | 11,102,000 | 11,543,000 | 10,811,000 |
| Payables | US$ in thousands | 1,728,000 | 1,662,000 | 1,598,000 | 1,690,000 | 1,563,000 | 1,616,000 | 1,678,000 | 1,751,000 | 1,593,000 | 1,917,000 | 1,986,000 | 1,964,000 | 1,911,000 | 1,938,000 | 1,793,000 | 1,629,000 | 1,276,000 | 1,271,000 | 1,390,000 | 1,433,000 |
| Payables turnover | 7.19 | 7.49 | 7.87 | 7.62 | 8.38 | 8.28 | 7.98 | 7.50 | 8.13 | 6.49 | 6.15 | 6.13 | 6.25 | 6.05 | 6.15 | 7.08 | 8.75 | 8.73 | 8.30 | 7.54 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,431,000K ÷ $1,728,000K
= 7.19
TE Connectivity Ltd's payables turnover ratio has fluctuated over the past few quarters. The company's payables turnover ratio was relatively stable in the range of 6.00 to 8.00 times from December 2019 to September 2022. However, there was a noticeable increase in the ratio in the subsequent quarters, reaching a peak of 8.75 in March 2020 before slightly declining.
A high payables turnover ratio generally indicates that the company is efficient in managing its payables and paying off its suppliers in a timely manner. TE Connectivity's payables turnover ratio has generally been above 6.00, reflecting a healthy trend in managing its accounts payable.
The increasing trend in the payables turnover ratio from September 2022 to March 2024 suggests that TE Connectivity has been improving its ability to settle its trade payables more quickly. This could be a positive sign of stronger supplier relationships or improved working capital management.
Overall, the company's payables turnover ratio has shown positive movement, indicating efficient management of payables and potentially improved liquidity. It will be important to continue monitoring this ratio to assess the effectiveness of TE Connectivity's payables management in the future.
Peer comparison
Sep 30, 2024