Whirlpool Corporation (WHR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,655,000 | 19,351,000 | 20,189,000 | 18,346,000 | 19,803,000 |
| Payables | US$ in thousands | 3,598,000 | 3,376,000 | 5,413,000 | 4,834,000 | 4,547,000 |
| Payables turnover | 5.18 | 5.73 | 3.73 | 3.80 | 4.36 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $18,655,000K ÷ $3,598,000K
= 5.18
The payables turnover ratio measures how efficiently a company manages its accounts payable by indicating how many times a company pays off its suppliers during a period. A higher payables turnover ratio generally indicates that a company is paying off its suppliers more frequently.
Looking at the historical data of Whirlpool Corp., we can observe fluctuations in the payables turnover ratio over the past five years. In 2023, the payables turnover ratio decreased to 4.53 from 4.93 in 2022. This decline suggests that Whirlpool Corp. took slightly longer to pay off its suppliers in 2023 compared to the previous year.
However, when comparing the most recent ratio to earlier years, it is still higher than the ratios in 2020 (3.23) and 2021 (3.25), indicating an improvement in managing payables during 2023.
Overall, Whirlpool Corp. has shown a relatively consistent ability to manage its payables effectively, with ratios above 3 in each of the past five years. This suggests that the company has efficient processes in place for managing its accounts payable and maintaining good relationships with its suppliers.
Peer comparison
Dec 31, 2023