Vontier Corp (VNT)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 746,500 | 663,000 | 673,900 | 740,200 | 769,300 | 2,568,600 | 2,587,700 | 2,589,200 | 2,557,600 | 2,468,500 | 2,435,600 | 2,401,300 | 2,363,800 |
| Payables | US$ in thousands | 378,100 | 370,200 | 367,700 | 384,900 | 366,800 | 352,100 | 353,900 | 373,700 | 430,900 | 413,500 | — | — | 424,900 |
| Payables turnover | 1.97 | 1.79 | 1.83 | 1.92 | 2.10 | 7.30 | 7.31 | 6.93 | 5.94 | 5.97 | — | — | 5.56 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $746,500K ÷ $378,100K
= 1.97
The payables turnover ratio for Vontier Corp provides insights into how efficiently the company is managing its accounts payable. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which may suggest strong liquidity and good relationships with suppliers. On the other hand, a lower ratio could imply that the company is taking longer to pay its suppliers, which could potentially strain relationships or indicate liquidity issues.
Looking at the trend in Vontier Corp's payables turnover over the reported periods, we observe fluctuations in the ratio. The ratio was 5.56 as of December 31, 2021, increased slightly to 5.97 by September 30, 2022, and peaked at 7.31 by June 30, 2023. This upward trend might indicate that Vontier Corp was managing its payables more efficiently during this period, possibly negotiating better terms with suppliers or streamlining its payment processes.
However, the payables turnover ratio declined significantly to 1.79 by September 30, 2024, and then slightly increased to 1.97 by December 31, 2024. This sharp decrease could be a cause for concern as it suggests that Vontier Corp was taking longer to pay its suppliers during this period, which might impact its relationships with suppliers or indicate potential liquidity constraints.
Overall, it is essential for Vontier Corp to closely monitor its payables turnover ratio and ensure that it maintains a balance between efficient management of payables and maintaining positive relationships with suppliers. Fluctuations in this ratio should be further investigated to understand the underlying reasons and take necessary actions to address any issues that may arise.
Peer comparison
Dec 31, 2024