Alamo Group Inc (ALG)
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 | 1,496,082 | 1,466,988 | 1,430,052 | 1,399,060 | 1,368,994 | 1,334,352 | 1,309,680 | 1,268,382 | 1,221,568 | 1,185,429 | 1,138,002 | 1,069,973 | 1,075,130 | 1,081,350 | 1,069,011 | 1,080,011 | 1,029,150 | 981,931 | 963,609 | 937,838 |
| Payables | US$ in thousands | 99,678 | 110,944 | 116,287 | 101,549 | 97,537 | 100,886 | 107,003 | 114,312 | 101,396 | 107,059 | 104,715 | 93,899 | 75,317 | 82,071 | 63,417 | 88,891 | 81,986 | 69,009 | 67,391 | 70,251 |
| Payables turnover | 15.01 | 13.22 | 12.30 | 13.78 | 14.04 | 13.23 | 12.24 | 11.10 | 12.05 | 11.07 | 10.87 | 11.39 | 14.27 | 13.18 | 16.86 | 12.15 | 12.55 | 14.23 | 14.30 | 13.35 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,496,082K ÷ $99,678K
= 15.01
Alamo Group Inc.'s payables turnover has shown a consistent and positive trend over the past eight quarters. The payables turnover ratio has been gradually increasing from 9.10 in Q1 2022 to 12.40 in Q4 2023.
A higher payables turnover ratio generally indicates that the company is efficiently managing its accounts payable. This means that Alamo Group Inc. is paying off its suppliers more frequently within each period, which could be a sign of good relationships with suppliers and effective working capital management.
The company's ability to efficiently turn over its payables can also indicate effective inventory management or negotiating favorable credit terms with suppliers. This can contribute to improved cash flow and profitability for Alamo Group Inc.
Overall, the increasing trend in the payables turnover ratio suggests that Alamo Group Inc. is effectively managing its accounts payable and optimizing its working capital, which could have positive implications for the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023