Trimble Inc (TRMB)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,465,900 | 1,570,700 | 1,624,700 | 1,397,100 | 1,490,400 |
| Payables | US$ in thousands | 165,300 | 175,500 | 207,300 | 143,200 | 159,300 |
| Payables turnover | 8.87 | 8.95 | 7.84 | 9.76 | 9.36 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,465,900K ÷ $165,300K
= 8.87
Payables turnover is a financial ratio that measures how efficiently a company is managing its accounts payable by indicating how many times during a period the company pays off its suppliers. A high payables turnover ratio typically suggests that the company is able to settle its payables quickly, which can reflect strong supplier relationships and effective working capital management.
Analyzing the payables turnover ratio of Trimble Inc over the last five years, we observe a fluctuating trend. In 2019, the company's payables turnover ratio was 9.36, which indicates that Trimble Inc was paying off its suppliers approximately 9.36 times during the year. This was followed by a slight decrease to 9.76 in 2020, showing a slightly longer payment period.
In 2021, the payables turnover ratio decreased to 7.84, signaling that the company took longer to pay off its suppliers compared to the previous year. However, the ratio rebounded in 2022 to 8.95, showing an improvement in payables management.
The most recent data for 2023 indicates a payables turnover ratio of 8.87, which suggests that Trimble Inc continued to effectively manage its payables by paying off suppliers approximately 8.87 times during the year.
Overall, despite some fluctuations in the payables turnover ratio over the years, Trimble Inc has maintained a relatively stable and efficient payment cycle with a consistent trend of paying off its suppliers in a timely manner.
Peer comparison
Dec 31, 2023