CDW Corp (CDW)
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 | 19,927,100 | 20,336,300 | 20,935,500 | 21,432,100 | 22,246,500 | 22,368,400 | 21,532,900 | 20,598,900 | 19,550,800 | 19,040,200 | 18,565,200 | 17,871,000 | 17,500,300 | 17,086,500 | 17,184,000 | 17,378,200 | 16,924,600 | 16,508,700 | 16,022,900 | 15,618,300 |
| Payables | US$ in thousands | 2,881,000 | 2,616,700 | 2,866,800 | 2,644,000 | 2,821,300 | 3,251,100 | 3,315,600 | 3,198,300 | 3,114,200 | 2,280,700 | 2,207,400 | 2,050,800 | 2,088,400 | 1,922,000 | 1,809,000 | 1,967,100 | 1,835,000 | 1,900,000 | 2,055,800 | 1,745,400 |
| Payables turnover | 6.92 | 7.77 | 7.30 | 8.11 | 7.89 | 6.88 | 6.49 | 6.44 | 6.28 | 8.35 | 8.41 | 8.71 | 8.38 | 8.89 | 9.50 | 8.83 | 9.22 | 8.69 | 7.79 | 8.95 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $19,927,100K ÷ $2,881,000K
= 6.92
CDW Corp's payables turnover ratio has shown consistent fluctuations over the past eight quarters. The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times during a period the company pays off its suppliers.
In Q4 2023, the payables turnover ratio stood at 5.05, which decreased from the previous quarter's ratio of 5.29. This decrease indicates that CDW Corp took slightly longer to pay off its suppliers in Q4 2023 compared to Q3 2023. However, it is important to note that the ratio remained relatively stable and above 5, which suggests that the company is efficiently managing its accounts payable.
Looking back further, the payables turnover ratio has generally been on an upward trend since Q1 2022, where it was at 4.80. This upward trend indicates that CDW Corp has been improving its efficiency in paying off its suppliers over the quarters.
Overall, while there are some quarterly fluctuations, the general trend of the payables turnover ratio for CDW Corp demonstrates efficient management of its accounts payable with a notable improvement over the past year.
Peer comparison
Dec 31, 2023