Vishay Intertechnology Inc (VSH)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,427,550 | 2,438,410 | 2,352,570 | 1,920,000 | 1,997,100 |
| Payables | US$ in thousands | 191,002 | 189,099 | 254,049 | 196,203 | 173,915 |
| Payables turnover | 12.71 | 12.89 | 9.26 | 9.79 | 11.48 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,427,550K ÷ $191,002K
= 12.71
Vishay Intertechnology, Inc.'s payables turnover ratio has been relatively consistent over the past five years, ranging from 9.26 to 12.89 times. The payables turnover ratio measures how efficiently a company is managing its payable obligations by evaluating how many times a company pays off its accounts payable during a specific period.
A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently within the period, which could be a sign of efficient cash flow management. In the case of Vishay Intertechnology, Inc., the average payables turnover ratio over the five-year period is around 11.23 times.
The upward trend in payables turnover from 2021 to 2022 and a subsequent slight decrease in 2023 suggest that the company may have improved its payables management efficiency but then experienced a minor slowdown in settling its payables in the most recent period.
Overall, with an average payables turnover ratio above 10 times, Vishay Intertechnology, Inc. appears to have a solid track record of effectively managing its accounts payable turnover, indicating good working capital management and relationships with its suppliers.
Peer comparison
Dec 31, 2023