Balchem Corporation (BCPC)
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 | 620,383 | 630,569 | 653,002 | 663,916 | 661,907 | 647,082 | 608,180 | 586,281 | 555,849 | 530,677 | 512,514 | 487,571 | 479,747 | 468,033 | 453,848 | 443,509 | 432,338 | 432,371 | 434,825 | 437,410 |
| Payables | US$ in thousands | 55,503 | 49,698 | 56,323 | 53,419 | 57,322 | 73,121 | 66,363 | 46,819 | 56,243 | 37,942 | 44,804 | 33,765 | 23,742 | 23,329 | 22,630 | 23,630 | 37,267 | 36,739 | 29,439 | 26,342 |
| Payables turnover | 11.18 | 12.69 | 11.59 | 12.43 | 11.55 | 8.85 | 9.16 | 12.52 | 9.88 | 13.99 | 11.44 | 14.44 | 20.21 | 20.06 | 20.06 | 18.77 | 11.60 | 11.77 | 14.77 | 16.61 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $620,383K ÷ $55,503K
= 11.18
The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times the company pays off its suppliers during a specific period. A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently, potentially reflecting good liquidity and effective management of working capital.
Analyzing Balchem Corp.'s payables turnover ratio over the past eight quarters, we observe some fluctuations. In Q4 2023, the payables turnover ratio decreased to 11.18 from 12.69 in Q3 2023. This indicates that the company took slightly longer to pay off its suppliers in Q4 compared to the previous quarter. However, the ratio remained relatively high, suggesting that Balchem Corp. still maintains a good level of efficiency in managing its accounts payable.
Comparing the current payables turnover ratio to the ratios from the prior quarters, we see a general trend of variability, with some quarters showing higher ratios (e.g., Q3 2023 and Q1 2023) and others showing lower ratios (e.g., Q4 2022 and Q2 2022). This fluctuation could be influenced by various factors such as changes in the company's payment terms with suppliers, the timing of purchases, or shifts in the company's operating cycle.
Overall, while the payables turnover ratio for Balchem Corp. has shown variability over the past quarters, it remains relatively high, indicating that the company is efficiently managing its payment obligations to suppliers. Investors and stakeholders may want to further investigate the reasons behind the fluctuations in the ratio to gain a deeper understanding of the company's working capital management practices.
Peer comparison
Dec 31, 2023