BWX Technologies Inc (BWXT)
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 | 1,875,716 | 1,802,541 | 1,765,526 | 1,707,202 | 1,680,899 | 1,660,752 | 1,623,001 | 1,585,818 | 1,573,797 | 1,544,512 | 1,556,765 | 1,548,482 | 1,548,119 | 1,495,426 | 1,479,375 | 1,449,864 | 1,361,056 | 1,323,379 | 1,291,961 | 1,272,147 |
| Payables | US$ in thousands | 126,651 | 151,433 | 144,437 | 137,583 | 127,112 | 146,543 | 150,167 | 141,131 | 189,842 | 137,936 | 143,878 | 146,958 | 184,392 | 162,482 | 141,459 | 123,975 | 170,678 | 122,277 | 108,700 | 98,455 |
| Payables turnover | 14.81 | 11.90 | 12.22 | 12.41 | 13.22 | 11.33 | 10.81 | 11.24 | 8.29 | 11.20 | 10.82 | 10.54 | 8.40 | 9.20 | 10.46 | 11.69 | 7.97 | 10.82 | 11.89 | 12.92 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,875,716K ÷ $126,651K
= 14.81
The payables turnover ratio measures how efficiently BWX Technologies Inc is managing its accounts payable by determining how many times the company pays off its average accounts payable balance within a certain period.
Based on the data provided, BWX Technologies Inc's payables turnover ratio has been relatively stable over the past 8 quarters, ranging from a low of 10.81 to a high of 14.81. This indicates that the company is consistently able to settle its accounts payable obligations within a short period, with an average of approximately 12.30 times per year.
A higher payables turnover ratio generally reflects a more efficient use of suppliers' credit and better liquidity management. BWX Technologies Inc's payables turnover ratio trending above 10 suggests that the company is effectively managing its payables and maintaining good relationships with its suppliers.
However, it is important to note that a very high payables turnover ratio could indicate overly aggressive attempts to delay payments to suppliers, potentially straining supplier relationships or leading to missed opportunities for early payment discounts. Conversely, a very low ratio could suggest inefficiencies in managing payables or an inability to negotiate favorable credit terms with suppliers.
Overall, the consistent payables turnover ratio for BWX Technologies Inc indicates effective management of accounts payable, contributing to the company's overall financial health.
Peer comparison
Dec 31, 2023