Visteon Corp (VC)
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 | 3,679,000 | 3,772,000 | 3,818,000 | 3,704,000 | 3,587,000 | 3,334,000 | 2,990,000 | 2,792,000 | 2,718,000 | 2,663,000 | 2,685,000 | 2,431,000 | 2,303,000 | 2,245,000 | 2,244,000 | 2,540,000 | 2,621,000 | 2,616,000 | 2,568,000 | 2,559,000 |
| Payables | US$ in thousands | 551,000 | 595,000 | 564,000 | 605,000 | 657,000 | 645,000 | 490,000 | 539,000 | 522,000 | 416,000 | 427,000 | 486,000 | 500,000 | 494,000 | 332,000 | 442,000 | 511,000 | 464,000 | 447,000 | 440,000 |
| Payables turnover | 6.68 | 6.34 | 6.77 | 6.12 | 5.46 | 5.17 | 6.10 | 5.18 | 5.21 | 6.40 | 6.29 | 5.00 | 4.61 | 4.54 | 6.76 | 5.75 | 5.13 | 5.64 | 5.74 | 5.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,679,000K ÷ $551,000K
= 6.68
The payables turnover ratio measures how efficiently a company manages its suppliers by comparing the cost of goods sold to its accounts payable. A higher payables turnover ratio indicates faster payment to suppliers.
Analyzing Visteon Corp.'s payables turnover ratio over the past eight quarters shows fluctuations in their ability to manage payables effectively. The company achieved a peak payables turnover of 6.40 in Q2 2023 and a low of 4.80 in Q1 2022. This suggests an improvement in managing supplier payments during Q2 2023 compared to the rest of the periods.
It's essential to track this ratio over time to ensure consistent cash flow management practices and maintain good relationships with suppliers. Visteon can use this information to evaluate its payables process efficiency and make strategic decisions to optimize working capital.
Peer comparison
Dec 31, 2023