Vontier Corp (VNT)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 768,500 | 785,000 | 2,577,600 | 2,363,800 | 2,094,000 |
| Payables | US$ in thousands | 378,100 | 366,800 | 430,900 | 424,900 | 367,400 |
| Payables turnover | 2.03 | 2.14 | 5.98 | 5.56 | 5.70 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $768,500K ÷ $378,100K
= 2.03
Based on the provided data for Vontier Corp's payables turnover, we observe the following trends:
1. For the years ending on December 31, 2020 and December 31, 2021, the payables turnover ratio remained relatively stable at 5.70 and 5.56 respectively. This indicates that Vontier Corp was able to efficiently manage its accounts payable during these periods.
2. There was a slight increase in the payables turnover ratio to 5.98 as of December 31, 2022. This suggests that the company was able to accelerate the payment of its liabilities, potentially improving its working capital management.
3. However, a significant decrease in the payables turnover ratio to 2.14 by December 31, 2023, followed by a further decline to 2.03 by December 31, 2024, indicates a deterioration in the company's ability to effectively manage its payables. This could potentially signal delays in payment to creditors or an inefficient use of working capital.
In conclusion, Vontier Corp's payables turnover ratio fluctuated over the years, showing both periods of efficient management and potential concerns regarding the company's ability to handle its accounts payable effectively. Further analysis of the company's financial position and cash flow management may be necessary to understand the underlying factors contributing to these fluctuations.
Peer comparison
Dec 31, 2024