Texas Instruments Incorporated (TXN)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,325,000 | 6,257,000 | 5,968,000 | 5,192,000 | 5,219,000 |
| Payables | US$ in thousands | 802,000 | 851,000 | 571,000 | 415,000 | 388,000 |
| Payables turnover | 10.38 | 7.35 | 10.45 | 12.51 | 13.45 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,325,000K ÷ $802,000K
= 10.38
The payables turnover ratio for Texas Instruments Inc. has shown a fluctuating trend over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers.
In 2023, the payables turnover ratio was 8.10, which suggests that Texas Instruments took approximately 8.10 days to pay off its accounts payable during that year. This was higher compared to the previous year, indicating a slight decrease in efficiency in managing payables.
In 2022, the ratio was 7.35, showing a decrease from 2021. This implies that Texas Instruments took longer to pay off its suppliers in 2022 compared to the previous year.
The ratio increased in 2021 to 9.14, indicating that the company improved its efficiency in paying off its accounts payable compared to 2020. This was a positive sign for the company's liquidity management.
In 2020 and 2019, the payables turnover ratios were 12.51 and 13.45, respectively. These high ratios suggest that Texas Instruments was effectively managing its payables during those years and was paying off its suppliers at a faster rate.
Overall, the fluctuating trend in payables turnover ratios for Texas Instruments Inc. over the past five years indicates changes in the company's efficiency in managing its accounts payable and its relationships with suppliers. The lower ratios in recent years may warrant further analysis to understand the underlying factors affecting the company's payables turnover.
Peer comparison
Dec 31, 2023