Novonix(Nvx) 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 NVX 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 '2022', NVX's payables turnover was 0.25, indicating how promptly the company pays its suppliers. Industry average for Industrial Machinery/Components in '2022' stood at 4.59.
• In '2022', NVX's payables turnover was 0.25, indicating how promptly the company pays its suppliers. The figure remained stable compared to '2022'. Industry average for Industrial Machinery/Components in '2022' stood at 4.59. Industry average remained unchanged from prior year.
• In '2023', NVX's payables turnover was 0.46, indicating how promptly the company pays its suppliers. The increase since '2022' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2023' stood at 4.95. Industry average increased by 0.35 compared to previous year.
• In '2024', NVX's payables turnover was 0.26, indicating how promptly the company pays its suppliers. The decline from '2023' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2024' stood at 4.98. Industry average increased by 0.04 compared to previous year.
Overall, NVX's payables turnover has been volatile but generally stable over the past 4 years.
Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Good Range: Ranges 5-15 depending on industry.