AdvanSix Inc (ASIX)

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	1,468,079	1,437,203	1,567,540	1,681,210	1,722,525	1,754,540	1,674,282	1,554,293	1,494,191	1,411,479	1,306,100	1,144,199	1,095,738	798,860	816,309	922,779	920,143	1,267,963	1,329,898	1,367,481
Payables	US$ in thousands	259,068	230,547	220,158	212,506	272,740	265,090	272,261	200,524	221,234	217,993	194,804	173,593	190,227	179,652	151,786	185,938	205,911	219,225	192,614	188,169
Payables turnover		5.67	6.23	7.12	7.91	6.32	6.62	6.15	7.75	6.75	6.47	6.70	6.59	5.76	4.45	5.38	4.96	4.47	5.78	6.90	7.27

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,468,079K ÷ $259,068K
= 5.67

To analyze AdvanSix Inc's payables turnover, we use the payables turnover ratio formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable.

Looking at the payables turnover ratios for AdvanSix Inc over the past eight quarters, we see some fluctuations. In Q4 2023, the payables turnover ratio was 5.28, which decreased from the previous quarter's 5.81. This suggests that the company took longer to pay its suppliers in Q4 2023 compared to Q3 2023.

On a longer-term basis, the trend in payables turnover has been somewhat volatile. The highest payables turnover ratio in the provided data was observed in Q1 2023 at 7.46, indicating a faster rate of paying off suppliers. Conversely, the lowest ratio was recorded in Q2 2022 at 5.83.

Overall, the payables turnover ratio reflects how efficiently a company manages its accounts payable and pays off its suppliers. A higher ratio usually indicates better liquidity and strong supplier relationships, as the company is paying its creditors more quickly. In contrast, a lower ratio may suggest potential cash flow issues or less efficient management of payables.

By monitoring the payables turnover ratio over time, stakeholders can assess AdvanSix Inc's ability to manage its payables effectively and maintain healthy supplier relationships.