Clean Harbors Inc (CLH)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,494,240 | 4,234,760 | 3,192,000 | 2,636,360 | 2,908,220 |
| Payables | US$ in thousands | 451,806 | 446,629 | 359,866 | 195,878 | 298,375 |
| Payables turnover | 9.95 | 9.48 | 8.87 | 13.46 | 9.75 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,494,240K ÷ $451,806K
= 9.95
Clean Harbors, Inc.'s payables turnover has shown a fluctuating trend over the past five years. The payables turnover ratio measures how efficiently a company manages its payments to suppliers.
In 2023, the payables turnover ratio increased to 8.29 times, indicating that the company paid its suppliers approximately every 44 days on average. This is an improvement compared to the previous year, suggesting that Clean Harbors, Inc. managed its accounts payable more efficiently.
However, in 2022, there was a slight decline in the payables turnover ratio to 7.93 times, which may indicate a longer payment cycle compared to 2021 when the ratio was 7.25 times.
The highest payables turnover ratio in the past five years was recorded in 2020 at 10.91 times, implying that the company was paying its suppliers more frequently or quickly during that period.
Overall, while the payables turnover ratio has varied over the years, the most recent improvement in 2023 may suggest that Clean Harbors, Inc. is effectively managing its trade payables and optimizing its liquidity position.
Peer comparison
Dec 31, 2023