Onity(Onit) 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 ONIT 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', ONIT's payables turnover was 6.35, indicating how promptly the company pays its suppliers. Industry average for Finance: Consumer Services in '2021' stood at 3.48.
• In '2022', ONIT's payables turnover was 6.26, indicating how promptly the company pays its suppliers. The decline from '2021' may indicate some operational or financial challenges. Industry average for Finance: Consumer Services in '2022' stood at 3.44. Industry average declined by 0.05 from previous year.
• In '2023', ONIT's payables turnover was 6.88, indicating how promptly the company pays its suppliers. The increase since '2022' reflects strengthening financial performance. Industry average for Finance: Consumer Services in '2023' stood at 3.41. Industry average declined by 0.02 from previous year.
• In '2024', ONIT's payables turnover was 6.87, indicating how promptly the company pays its suppliers. The decline from '2023' may indicate some operational or financial challenges. Industry average for Finance: Consumer Services in '2024' stood at 3.52. Industry average increased by 0.11 compared to previous year.
Overall, ONIT'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.