CDW Corp (CDW)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 19,927,100 | 22,246,500 | 19,550,800 | 17,500,300 | 16,924,600 |
| Payables | US$ in thousands | 2,881,000 | 2,821,300 | 3,114,200 | 2,088,400 | 1,835,000 |
| Payables turnover | 6.92 | 7.89 | 6.28 | 8.38 | 9.22 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $19,927,100K ÷ $2,881,000K
= 6.92
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its suppliers in a given period.
Analyzing CDW Corp's payables turnover over the past five years, we observe the following trends:
1. The payables turnover ratio has fluctuated over the years, ranging from 4.84 to 6.62, indicating some variability in how quickly CDW Corp is paying its suppliers.
2. A decreasing trend in the payables turnover ratio from 2019 to 2021 suggests that CDW Corp is taking longer to pay off its suppliers during this period.
3. The payables turnover increased in 2022 but decreased again in 2023, indicating a mixed performance in managing accounts payable efficiency over the last two years.
4. A higher payables turnover ratio generally indicates that a company is paying off its suppliers more quickly, which could potentially imply strong cash flow management and good relationships with suppliers.
Overall, while CDW Corp's payables turnover ratio has shown some fluctuations, further analysis of the company's cash flow management and supplier relationships may be necessary to fully understand the implications of these trends.
Peer comparison
Dec 31, 2023