Topbuild Corp (BLD)

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	4,639,160	4,599,750	4,563,950	4,462,950	4,464,950	4,429,040	4,411,910	4,398,060	4,338,140	4,220,010	3,846,653	3,475,201	3,104,475	2,753,963	2,633,512	2,491,347	2,426,304	2,384,083	2,389,883	2,408,126
Payables	US$ in thousands	456,446	461,478	461,139	467,863	469,585	455,840	468,602	450,963	487,114	510,163	508,227	473,918	461,917	382,932	356,570	330,813	331,710	311,696	293,224	305,614
Payables turnover		10.16	9.97	9.90	9.54	9.51	9.72	9.42	9.75	8.91	8.27	7.57	7.33	6.72	7.19	7.39	7.53	7.31	7.65	8.15	7.88

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,639,160K ÷ $456,446K
= 10.16

Topbuild Corp's payables turnover has fluctuated over the past few years. The trend indicates an increasing payables turnover ratio from March 31, 2020, to December 31, 2022, with a peak at 10.16 on December 31, 2024. This suggests that the company is paying its suppliers more frequently during this period.

A higher payables turnover ratio typically indicates that the company is managing its accounts payable efficiently by paying its suppliers quickly. However, an extremely high turnover ratio could also indicate aggressive payment practices that may strain relationships with suppliers or signal budgetary constraints.

Overall, the increasing trend in the payables turnover ratio for Topbuild Corp from 2020 to 2024 suggests effective management of the company's accounts payable and a proactive approach to supplier relationships.