Visteon Corp (VC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,467,000 | 3,388,000 | 2,519,000 | 2,303,000 | 2,621,000 |
| Payables | US$ in thousands | 551,000 | 657,000 | 522,000 | 500,000 | 511,000 |
| Payables turnover | 6.29 | 5.16 | 4.83 | 4.61 | 5.13 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,467,000K ÷ $551,000K
= 6.29
The payables turnover ratio for Visteon Corp. has shown a consistent increasing trend over the past five years. The ratio increased from 5.13 in 2019 to 6.29 in 2023. This indicates that the company is paying off its suppliers more frequently each year, which could suggest improved liquidity and efficient management of payables. A higher payables turnover ratio signifies that the company is managing its trade payables effectively by either paying them off quickly or negotiating favorable credit terms with suppliers. Overall, the increasing trend in the payables turnover ratio is a positive indicator of Visteon Corp.'s ability to efficiently manage its accounts payable.
Peer comparison
Dec 31, 2023