TE Connectivity Ltd (TEL)
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 | 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 | 10,979,000 | 10,573,000 | 10,902,000 |
| Payables | US$ in thousands | 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 | 1,357,000 | 1,438,000 | 1,485,000 |
| Payables turnover | 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 | 8.09 | 7.35 | 7.34 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,882,000K ÷ $1,690,000K
= 7.62
TE Connectivity Ltd's payables turnover ratio has exhibited fluctuations over the past few quarters. The payables turnover ratio measures how quickly a company pays its suppliers. Higher ratios indicate that the company is paying its suppliers more quickly.
In the most recent quarter, ending on December 31, 2023, the payables turnover ratio stood at 7.62, a decrease from the previous quarter. This suggests that the company took longer to pay its suppliers compared to the prior quarter's ratio of 8.38.
Looking at the trend over the past year, the payables turnover ratio has generally been above 6, indicating a relatively efficient payment cycle. The highest ratio recorded was in September 2020 at 8.75, and the lowest was in June 2022 at 6.49.
Overall, variations in TE Connectivity Ltd's payables turnover ratio may reflect changes in the company's payment policies, supplier relationships, or operational efficiency. It is important for stakeholders to monitor this ratio to understand how effectively the company manages its payables and its relationships with suppliers.
Peer comparison
Dec 31, 2023