Tempur Sealy International Inc (TPX)
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 | 2,796,700 | 2,837,200 | 2,876,000 | 2,863,100 | 2,871,600 | 2,928,500 | 2,967,500 | 2,903,900 | 2,772,100 | 2,588,800 | 2,409,700 | 2,158,100 | 2,038,500 | 1,951,600 | 1,809,900 | 1,820,000 | 1,763,800 | 1,671,800 | 1,640,900 | 1,618,600 |
| Payables | US$ in thousands | 311,300 | 361,700 | 362,600 | 368,100 | 359,800 | 440,200 | 432,600 | 462,300 | 432,000 | 463,400 | 346,700 | 278,600 | 324,100 | 330,900 | 247,100 | 265,300 | 251,700 | 276,200 | 235,500 | 245,700 |
| Payables turnover | 8.98 | 7.84 | 7.93 | 7.78 | 7.98 | 6.65 | 6.86 | 6.28 | 6.42 | 5.59 | 6.95 | 7.75 | 6.29 | 5.90 | 7.32 | 6.86 | 7.01 | 6.05 | 6.97 | 6.59 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,796,700K ÷ $311,300K
= 8.98
Tempur Sealy International Inc's payables turnover ratio has shown a generally positive trend over the past eight quarters, indicating the company's efficiency in managing its accounts payable. The payables turnover ratio measures how many times a company pays off its accounts payable during a specific period, with a higher ratio suggesting that the company is paying its suppliers more quickly.
From Q1 2022 to Q4 2023, the payables turnover ratio has steadily increased from 6.28 to 8.98, peaking in the most recent quarter. This improvement suggests that Tempur Sealy International Inc has been able to more efficiently settle its outstanding debts to suppliers, potentially strengthening vendor relationships and improving cash flow management.
Overall, the increasing trend in the payables turnover ratio indicates that Tempur Sealy International Inc has been effectively managing its payables and demonstrates a positive liquidity position. It is essential to continue monitoring this ratio to ensure continued efficiency in managing accounts payable and sustaining healthy vendor relationships.
Peer comparison
Dec 31, 2023