Tootsie Roll Industries Inc (TR)
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 | 667,537 | 661,003 | 634,639 | 605,709 | 576,215 | 561,601 | 538,534 | 530,626 | 503,643 | 473,280 | 451,027 | 422,621 | 412,819 | 416,367 | 397,207 | 383,280 | 365,374 | 353,528 | 355,877 | 357,345 |
| Payables | US$ in thousands | 15,816 | 22,696 | 22,156 | 21,706 | 25,246 | 30,728 | 21,618 | 21,676 | 14,969 | 24,512 | 20,317 | 14,275 | 13,025 | 15,880 | 12,935 | 15,991 | 12,720 | 18,020 | 14,326 | 13,520 |
| Payables turnover | 42.21 | 29.12 | 28.64 | 27.91 | 22.82 | 18.28 | 24.91 | 24.48 | 33.65 | 19.31 | 22.20 | 29.61 | 31.69 | 26.22 | 30.71 | 23.97 | 28.72 | 19.62 | 24.84 | 26.43 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $667,537K ÷ $15,816K
= 42.21
Tootsie Roll Industries, Inc.'s payables turnover has shown an increasing trend over the past eight quarters. The payables turnover ratio measures how efficiently a company manages its payments to suppliers. A higher turnover ratio indicates that the company is paying its suppliers more frequently, which can be a positive sign of strong supplier relationships and effective cash management.
In Q4 2023, the payables turnover ratio reached 32.41, the highest level in the provided data. This indicates that Tootsie Roll Industries is managing its payables exceptionally well during this period, converting its accounts payable into cash or inventory at a fast rate.
Compared to Q3 2023, the payables turnover increased significantly from 22.39 to 32.41, showing an improvement in managing supplier payments. This increase indicates that the company may be streamlining its payment processes or negotiating better payment terms with suppliers.
Looking at a longer historical perspective, compared to the same quarter of the previous year (Q4 2022), Tootsie Roll Industries has substantially improved its payables turnover from 17.99 to 32.41. This suggests that the company has enhanced its ability to settle obligations to suppliers efficiently and in a timely manner.
Overall, the increasing trend in Tootsie Roll Industries' payables turnover reflects positively on the company's liquidity and operational efficiency. It indicates that the company is effectively managing its accounts payable, which can lead to improved cash flow and financial performance.
Peer comparison
Dec 31, 2023