NCR Voyix Corporation (VYX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 924,000 | 1,352,000 | 1,422,000 | 4,683,000 | 4,994,000 |
| Payables | US$ in thousands | 505,000 | 594,000 | 826,000 | 632,000 | 840,000 |
| Payables turnover | 1.83 | 2.28 | 1.72 | 7.41 | 5.95 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $924,000K ÷ $505,000K
= 1.83
The payables turnover ratio of NCR Voyix Corporation has exhibited variability over the past five years. The ratio has ranged from a low of 1.72 in 2021 to a high of 7.41 in 2020. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a given period, while a lower ratio suggests a longer payment cycle.
In 2023, the payables turnover ratio decreased to 1.83 from 2.28 in 2022, implying that the company took longer to pay its accounts payable relative to the prior year. This may suggest a shift in the company's payment policies or changes in supplier relationships.
It is important to note that a decreasing trend in payables turnover could potentially signal liquidity or cash flow challenges, as the company may be holding onto its cash for longer periods before settling payables. Conversely, a significant increase in the ratio could indicate improved efficiency in managing supplier payments.
Further analysis into the reasons behind the fluctuations in the payables turnover ratio, in conjunction with other financial metrics and qualitative factors, would provide deeper insights into NCR Voyix Corporation's financial health and operational performance.