Trane Technologies plc (TT)

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 3,143,400 3,693,500 3,282,600 2,937,000 2,694,200 3,669,800 3,182,000 2,875,800 2,569,900 11,887,200 11,680,300 11,215,600 11,037,600 11,994,000 12,804,100 13,977,700 14,717,900 14,427,100 14,102,400 13,901,300
Payables US$ in thousands 2,025,200 2,093,300 2,176,900 1,962,600 2,091,600 2,061,300 2,000,200 1,931,600 1,787,300 1,757,800 1,833,200 1,608,900 1,520,200 1,458,800 1,368,200 1,446,700 1,381,300 1,758,800 1,889,900 1,800,100
Payables turnover 1.55 1.76 1.51 1.50 1.29 1.78 1.59 1.49 1.44 6.76 6.37 6.97 7.26 8.22 9.36 9.66 10.66 8.20 7.46 7.72

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,143,400K ÷ $2,025,200K
= 1.55

Based on the data provided, Trane Technologies plc's payables turnover has fluctuated over the past eight quarters. The payables turnover ratio measures how efficiently the company is managing its trade payables by indicating how many times the company pays off its suppliers in a given period.

In Q4 2023, the payables turnover ratio was 5.84, reflecting a consistent increase from the previous quarter. This indicates that Trane Technologies plc is managing its payables more efficiently in Q4 2023 compared to Q3 2023.

Looking at the trend over the past year, the payables turnover ratio has generally stayed above 5, showcasing a consistent ability to pay off suppliers in a timely manner. However, there have been fluctuations in the ratio, with Q2 2023 showing the lowest ratio of 5.14 and Q1 2023 the highest at 5.70.

Overall, Trane Technologies plc's payables turnover indicates a relatively efficient management of its trade payables, with fluctuations in the ratio possibly reflecting seasonal variations or changes in the company's payment policies. Monitoring this ratio over time can provide insights into the company's liquidity management and relationship with suppliers.


See also:

Trane Technologies plc Payables Turnover (Quarterly Data)