Brinks Company (BCO)

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	3,707,100	3,659,100	3,618,800	3,542,500	3,461,900	3,408,100	3,365,000	3,316,700	3,235,800	3,172,700	3,078,000	2,942,700	2,877,300	2,826,700	2,798,200	2,822,800	2,832,100	2,815,900	2,754,100	2,712,400
Payables	US$ in thousands	249,700	206,700	231,500	248,700	296,500	193,500	222,000	199,200	211,200	186,800	194,000	179,100	206,000	173,800	174,400	151,600	184,500	169,000	165,700	147,000
Payables turnover		14.85	17.70	15.63	14.24	11.68	17.61	15.16	16.65	15.32	16.98	15.87	16.43	13.97	16.26	16.04	18.62	15.35	16.66	16.62	18.45

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,707,100K ÷ $249,700K
= 14.85

The payables turnover ratio for Brink`s Co. has fluctuated over the past eight quarters, ranging from a low of 11.68 in Q4 2022 to a high of 17.70 in Q3 2023. This ratio measures how efficiently the company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable balance. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.

The trend of increasing payables turnover from Q4 2022 to Q3 2023 suggests that Brink`s Co. has been extending payment to its suppliers at a faster pace during this period. This could be a strategic approach to managing cash flows and improving relationships with suppliers. However, the decrease in Q4 2023 compared to the previous quarter might indicate a reversal of this trend.

Overall, a payables turnover ratio above 14 indicates that Brink`s Co. is efficiently managing its accounts payable by paying off its suppliers in a timely manner. While the fluctuations in the ratio should be monitored, the company's ability to maintain a relatively high payables turnover ratio is a positive sign of its financial health and operational efficiency.