Vontier Corp (VNT)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 366,800 | 352,100 | 353,900 | 373,700 | 430,900 | 413,500 | — | — | 424,900 | — | — | — |
| Payables turnover | 2.10 | 7.30 | 7.31 | 6.93 | 5.94 | 5.97 | — | — | 5.56 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $769,300K ÷ $366,800K
= 2.10
The payables turnover ratio measures how efficiently a company is managing its payables. A higher turnover ratio indicates that the company is taking fewer days to pay off its suppliers, which could signify strong liquidity or effective working capital management.
Analyzing Vontier Corporation's payables turnover over the past 8 quarters, we observe fluctuations in the ratio. In Q4 2023, the payables turnover was 4.54, which decreased from the previous quarter's 4.92. This may suggest that Vontier took slightly longer to pay its suppliers in Q4 compared to Q3 2023.
Overall, Vontier's payables turnover has been relatively stable, ranging from 4.08 to 4.96 over the past two years. This indicates that Vontier has been consistent in managing its payables efficiently. However, it would be beneficial to monitor any significant deviations from this trend to understand potential changes in the company's payment practices or supplier relationships.
Peer comparison
Dec 31, 2023