Api Group Corp (APG)
Payables turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,963,000 | 4,945,000 | 4,960,000 | 4,974,000 | 5,008,000 | 5,038,000 | 4,977,000 | 4,999,000 | 4,938,000 | 4,844,000 | 4,442,000 | 3,942,000 | 3,474,000 | 3,001,000 | 2,847,000 | 2,788,000 | 2,757,000 | 2,831,000 | 2,934,000 | 3,077,424 |
| Payables | US$ in thousands | 450,000 | 497,000 | 454,000 | 424,000 | 382,000 | 472,000 | 431,000 | 473,000 | 442,000 | 490,000 | 469,000 | 448,000 | 391,000 | 236,000 | 205,000 | 180,000 | 167,000 | 150,000 | 142,000 | 155,000 |
| Payables turnover | 11.03 | 9.95 | 10.93 | 11.73 | 13.11 | 10.67 | 11.55 | 10.57 | 11.17 | 9.89 | 9.47 | 8.80 | 8.88 | 12.72 | 13.89 | 15.49 | 16.51 | 18.87 | 20.66 | 19.85 |
March 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,963,000K ÷ $450,000K
= 11.03
The payables turnover ratio of Api Group Corp exhibits notable fluctuations over the analyzed period from June 30, 2020, through March 31, 2025. Initially, the ratio was relatively high at 19.85 times in June 2020, indicating rapid payments to suppliers and efficient management of accounts payable. Throughout 2020, the ratio increased marginally, reaching a peak of 20.66 times in September 2020, before declining to 18.87 times at the end of the year.
In 2021, a steady downward trend is observed, with the ratio decreasing from 16.51 in March to 12.72 in December. This trend accelerated early in 2022, with the ratio dropping sharply to 8.88 by March 2022, reflecting significantly slower payments or perhaps extended credit terms from suppliers. The ratio remains low relative to the earlier period, oscillating between approximately 8.80 and 11.55 through 2022 and into 2023, suggesting a prolonged period of extended payables or changes in cash management policies.
In 2023, the ratio demonstrates slight recovery and stabilization, reaching a peak of 13.11 in March before declining again to 10.93 in September 2023. The ratio continued to fluctuate modestly in late 2023 and early 2024, with values generally in the low to mid-teens. This pattern indicates a degree of adjustment in the company's payable management strategies or altered supplier-credit arrangements.
Overall, the trend reveals an initial phase of efficient vendor payments followed by a substantial extension of payable periods starting around 2021, possibly driven by strategic liquidity management or supplier negotiations. The current levels suggest a relatively conservative approach to settling payables, balancing cash flows with supplier relations. The variations over time underscore the importance of closely monitoring the company's short-term liquidity position and its impact on operational efficiency.
Peer comparison
Mar 31, 2025