Topbuild Corp (BLD)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,611,850 | 4,464,950 | 4,336,220 | 3,104,480 | 2,426,300 |
| Payables | US$ in thousands | 456,446 | 469,585 | 487,114 | 461,917 | 331,710 |
| Payables turnover | 10.10 | 9.51 | 8.90 | 6.72 | 7.31 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,611,850K ÷ $456,446K
= 10.10
To analyze Topbuild Corp's payables turnover, we will look at the trend over the five-year period from December 31, 2020, to December 31, 2024.
The payables turnover ratio measures how efficiently a company pays its suppliers. A higher turnover ratio indicates that the company is managing its payables effectively by paying them off quickly.
- The payables turnover ratio has shown a consistent increase over the five-year period, starting at 7.31 in December 2020 and reaching 10.10 by December 2024. This suggests that Topbuild Corp has improved its ability to pay off its suppliers in a timely manner.
- The increase in the payables turnover ratio indicates that Topbuild Corp has been more efficient in managing its payable obligations, possibly negotiating better payment terms with its suppliers or improving internal processes related to accounts payable.
- The upward trend in the payables turnover ratio may also signify a strengthening financial position for Topbuild Corp, as efficiently managing payables can lead to better cash flow management and working capital efficiency.
- Overall, the increasing trend in Topbuild Corp's payables turnover ratio from 2020 to 2024 reflects positively on the company's ability to manage its accounts payables effectively and maintain good relationships with its suppliers.