Trimble Inc (TRMB)
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 | 2,988,400 | 2,722,900 | 2,694,000 | 2,635,000 | 2,712,400 | 2,421,800 | 2,174,100 | 1,927,800 | 1,624,700 | 1,571,700 | 1,527,900 | 1,437,500 | 1,397,100 | 1,402,300 | 1,411,500 | 1,477,200 | 1,490,400 | 1,497,600 | 1,503,600 | 1,702,400 |
| Payables | US$ in thousands | 165,300 | 179,500 | 180,200 | 166,500 | 175,500 | 194,800 | 191,700 | 213,300 | 207,300 | 193,400 | 181,400 | 157,900 | 143,200 | 131,400 | 128,900 | 145,400 | 159,300 | 156,700 | 148,400 | 147,600 |
| Payables turnover | 18.08 | 15.17 | 14.95 | 15.83 | 15.46 | 12.43 | 11.34 | 9.04 | 7.84 | 8.13 | 8.42 | 9.10 | 9.76 | 10.67 | 10.95 | 10.16 | 9.36 | 9.56 | 10.13 | 11.53 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,988,400K ÷ $165,300K
= 18.08
The payables turnover ratio for Trimble Inc has shown a generally increasing trend over the past few years. The ratio has improved from 10.13 in March 2019 to 18.08 in December 2023. This indicates that Trimble has been managing its accounts payable more efficiently, taking longer to pay its suppliers, and potentially benefiting from more favorable credit terms.
A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which can be a positive sign of strong liquidity management. It may also indicate effective inventory management and negotiating favorable payment terms with suppliers.
Overall, the increasing trend in the payables turnover ratio for Trimble Inc reflects a more efficient use of resources and better working capital management, which can contribute to improved financial performance and decision-making.
Peer comparison
Dec 31, 2023