NCR Voyix Corporation (VYX)
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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 934,000 | 1,417,000 | 1,357,000 | 1,337,000 | 1,352,000 | 1,433,000 | 1,468,000 | 1,496,000 | 1,422,000 | 2,332,000 | 3,143,000 | 3,866,000 | 4,683,000 | 4,734,000 | 4,848,000 | 4,975,000 | 4,994,000 | 4,999,000 | 4,863,000 | 4,758,000 |
| Payables | US$ in thousands | 505,000 | 820,000 | 832,000 | 952,000 | 594,000 | 876,000 | 949,000 | 901,000 | 826,000 | 767,000 | 746,000 | 707,000 | 632,000 | 676,000 | 680,000 | 790,000 | 840,000 | 800,000 | 769,000 | 788,000 |
| Payables turnover | 1.85 | 1.73 | 1.63 | 1.40 | 2.28 | 1.64 | 1.55 | 1.66 | 1.72 | 3.04 | 4.21 | 5.47 | 7.41 | 7.00 | 7.13 | 6.30 | 5.95 | 6.25 | 6.32 | 6.04 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $934,000K ÷ $505,000K
= 1.85
The payables turnover ratio measures how efficiently a company is managing its accounts payable by assessing how many times a company pays off its average accounts payable balance during a period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently.
Analyzing the payables turnover trend of NCR Voyix Corporation over the past years, we observe fluctuations in the ratio. The ratio was relatively stable around 1.5 to 1.7 for most of the periods, showing that the company paid off its suppliers almost twice a year on average.
However, there were significant increases in the payables turnover ratio in the last three periods of 2021, reaching levels above 4, indicating a notable improvement in the management of accounts payable during that time. This sudden increase could be due to various factors such as renegotiated payment terms with suppliers, changes in procurement strategies, or enhanced cash management practices.
In contrast, the payables turnover ratio declined in 2022 and 2023, dropping to 1.40 in March 2023, indicating a lengthened payment period or a decrease in the frequency of paying off suppliers during these periods. A lower payables turnover ratio could suggest cash flow issues or a deliberate strategy to preserve cash by extending payment terms.
Overall, NCR Voyix Corporation's payables turnover has shown some variability over the periods, reflecting changes in the company's accounts payable management practices and relationships with suppliers. Further analysis of the underlying reasons behind these fluctuations would provide a more comprehensive understanding of the company's financial operations and strategies.