Topbuild Corp (BLD)

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	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	2,387,427	2,245,660	2,124,002	1,995,684
Payables	US$ in thousands	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	307,970	300,125	288,985	281,346
Payables turnover		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	7.75	7.48	7.35	7.09

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,464,950K ÷ $469,585K
= 9.51

TopBuild Corp's payables turnover ratio has shown a consistent and upward trend over the past eight quarters, reflecting the company's effectiveness in managing its accounts payable. The payables turnover ratio increased from 5.92 in Q1 2022 to 7.94 in Q1 2023, indicating that the company is paying its suppliers more frequently within a given period.

A higher payables turnover ratio suggests that TopBuild Corp is able to efficiently pay off its suppliers, potentially taking advantage of discounts for early payment and maintaining good relationships with vendors. This trend also indicates effective working capital management, as the company is effectively utilizing its accounts payable to support its operations.

Overall, the consistent improvement in the payables turnover ratio reflects positively on TopBuild Corp's financial health and ability to manage its cash flow effectively.