Benchmark Electronics Inc (BHE)

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	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	2,082,567	2,216,393	2,301,812	2,359,476
Payables	US$ in thousands	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	302,994	295,693	372,106	371,732
Payables turnover		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	6.87	7.50	6.19	6.35

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,567,906K ÷ $367,480K
= 6.99

The payables turnover ratio for Benchmark Electronics Inc. has shown a generally increasing trend over the past eight quarters, indicating an improvement in the company's efficiency in managing its payables.

The ratio has consistently been above 6, with the highest value of 6.99 in Q4 2023 and the lowest value of 4.67 in Q2 2022. This suggests that, on average, Benchmark Electronics Inc. is able to pay off its accounts payable nearly 6 to 7 times in a given period, which is a positive indicator of the company's ability to manage its short-term obligations effectively.

The gradual increase in the payables turnover ratio over the quarters implies that the company has been optimizing its payment processes, potentially negotiating better terms with suppliers or improving internal efficiencies. This could lead to better cash flow management and potentially lower borrowing needs for the company.

Overall, the consistent improvement in the payables turnover ratio for Benchmark Electronics Inc. indicates a positive trend in the company's ability to efficiently utilize its resources and manage its working capital effectively.