Cognex(Cgnx) Financials: Payables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - payables turnover
This chart shows the historical trend of payables turnover for CGNX compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Payables Turnover
Definition: Payables turnover shows how fast the company pays its suppliers for goods or services bought on credit. A high turnover means the company pays suppliers quickly, which may reflect strong cash flow or favorable terms. A very low turnover might mean the company is stretching payments to preserve cash — or possibly experiencing financial strain.
Interpretation:
• In '2021', CGNX's payables turnover was 5.27, indicating how promptly the company pays its suppliers. Industry average for Industrial Machinery/Components in '2021' stood at 4.38.
• In '2022', CGNX's payables turnover was 5.81, indicating how promptly the company pays its suppliers. The increase since '2021' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2022' stood at 4.59. Industry average increased by 0.22 compared to previous year.
• In '2023', CGNX's payables turnover was 5.65, indicating how promptly the company pays its suppliers. The decline from '2022' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2023' stood at 4.95. Industry average increased by 0.35 compared to previous year.
• In '2024', CGNX's payables turnover was 5.66, indicating how promptly the company pays its suppliers. The increase since '2023' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2024' stood at 4.98. Industry average increased by 0.04 compared to previous year.
Overall, CGNX's payables turnover has steadily improved over the past 4 years.
Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Good Range: Ranges 5-15 depending on industry.