ArcBest Corp (ARCB)

Payables turnover

		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	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	1,799,004	1,794,182	1,824,719	1,820,460	1,817,905	1,812,736	1,778,338	1,778,718	1,762,408	1,732,780	1,678,072	1,617,814	1,554,301	1,503,081	1,469,000	1,385,074	1,370,728	1,040,771	1,041,638	1,097,534
Payables	US$ in thousands	172,763	204,696	222,303	209,908	214,004	245,899	245,998	253,578	269,854	329,887	346,051	340,966	311,401	227,893	204,124	177,885	170,898	162,021	140,632	127,625
Payables turnover		10.41	8.77	8.21	8.67	8.49	7.37	7.23	7.01	6.53	5.25	4.85	4.74	4.99	6.60	7.20	7.79	8.02	6.42	7.41	8.60

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,799,004K ÷ $172,763K
= 10.41

The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing its average accounts payable to its cost of goods sold over a specific period. A higher payables turnover ratio indicates that the company is taking less time to pay its suppliers, which can be a positive sign of strong liquidity and effective cash management.

Based on the data provided for ArcBest Corp, the payables turnover ratio has fluctuated over the years. It was relatively high at 8.60 on March 31, 2020, indicating that the company was paying its suppliers efficiently. However, the ratio decreased in the following periods, reaching a low of 4.74 on March 31, 2022, suggesting that the company was taking longer to settle its payables.

Subsequently, the payables turnover ratio started to improve, showing an upward trend from March 31, 2022, to December 31, 2024, where it reached its highest point at 10.41. This improvement indicates that ArcBest Corp has been able to enhance its payables management efficiency by reducing the time taken to pay its suppliers.

Overall, the increasing trend in the payables turnover ratio for ArcBest Corp from 2022 to 2024 suggests that the company has been effectively managing its accounts payable and optimizing its working capital utilization. However, it is essential to continue monitoring this ratio to ensure ongoing efficiency in managing payables and maintaining healthy supplier relationships.