Benchmark Electronics Inc (BHE)

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	2,386,081	2,417,469	2,477,081	2,545,336	2,567,906	2,626,073	2,680,280	2,683,352	2,631,096	2,523,577	2,336,929	2,164,405	2,049,418	1,949,009	1,910,429	1,869,974	1,878,083	1,878,625	1,905,302	2,001,387
Payables	US$ in thousands	354,218	356,038	346,153	348,374	367,480	382,170	417,406	421,746	424,272	522,499	500,886	457,252	426,555	401,106	380,164	325,226	282,208	282,591	304,601	315,729
Payables turnover		6.74	6.79	7.16	7.31	6.99	6.87	6.42	6.36	6.20	4.83	4.67	4.73	4.80	4.86	5.03	5.75	6.65	6.65	6.26	6.34

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,386,081K ÷ $354,218K
= 6.74

The payables turnover ratio for Benchmark Electronics Inc has experienced fluctuations over the quarters from March 31, 2020, to December 31, 2024. The ratio started at 6.34 in March 2020, indicating the company took approximately 6.34 times to pay off its accounts payable during that period.

Subsequently, the ratio decreased to 5.75 in March 2021, reflecting a potential inefficiency in managing payables. The trend of declining payables turnover continued until June 30, 2021, where it fell to 5.03, suggesting a longer payment cycle. This downward trend continued, reaching its lowest point of 4.67 on June 30, 2022, implying the company took longer to pay off its payables during that period.

However, from December 31, 2022, there was an improvement in the payables turnover ratio, which increased to 6.20, showing efficiency in managing payables. This trend continued to December 31, 2024, where it stood at 6.74, indicating the company took approximately 6.74 times to pay off its accounts payable during that period.

Overall, fluctuations in the payables turnover ratio indicate variations in the company's ability to manage its payables efficiently. It is essential for Benchmark Electronics Inc to closely monitor its payables turnover ratio to ensure effective cash flow management and supplier relationships.