Terex Corporation (TEX)
Payables turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,059,500 | 3,975,600 | 4,006,600 | 4,013,500 | 3,975,300 | 3,997,400 | 3,882,800 | 3,686,800 | 3,546,500 | 3,382,500 | 3,314,400 | 3,257,300 | 3,129,400 | 2,948,700 | 2,752,700 | 2,529,000 | 2,537,100 | 2,616,000 | 2,811,700 | 3,263,400 |
| Payables | US$ in thousands | 580,000 | 593,000 | 703,700 | 699,300 | 703,000 | 668,300 | 690,300 | 686,700 | 624,600 | 589,400 | 604,600 | 571,500 | 537,700 | 548,700 | 548,700 | 474,000 | 369,900 | 337,800 | 349,700 | 454,900 |
| Payables turnover | 7.00 | 6.70 | 5.69 | 5.74 | 5.65 | 5.98 | 5.62 | 5.37 | 5.68 | 5.74 | 5.48 | 5.70 | 5.82 | 5.37 | 5.02 | 5.34 | 6.86 | 7.74 | 8.04 | 7.17 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,059,500K ÷ $580,000K
= 7.00
Terex Corporation's payables turnover has fluctuated over the period under review. The payables turnover ratio indicates how quickly the company pays its suppliers. A higher turnover ratio typically suggests that the company is managing its payables efficiently.
From March 31, 2020, to September 30, 2022, the payables turnover ratio ranged between 5.02 and 8.04, showing some variability. However, it remained relatively stable within this range. There was a noticeable decline in the payables turnover ratio from December 31, 2022, to June 30, 2024, where it dipped to as low as 5.34.
The ratio then began to improve, reaching its peak at 7.00 by December 31, 2024. This increase could indicate that Terex Corporation may have adjusted its payment terms with suppliers or improved its cash management strategies during this period.
Overall, the trend in the payables turnover ratio for Terex Corporation reflects some variability but suggests a generally efficient management of payables over the analyzed period.