Clean Harbors Inc (CLH)
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 | 4,489,370 | 4,447,900 | 4,395,890 | 4,334,880 | 4,230,440 | 4,117,904 | 3,822,440 | 3,505,852 | 3,188,622 | 2,896,634 | 2,744,411 | 2,577,939 | 2,632,997 | 2,573,559 | 2,689,486 | 2,833,964 | 2,777,373 | 2,756,462 | 2,722,766 | 2,713,147 |
| Payables | US$ in thousands | 451,806 | 414,963 | 374,438 | 427,480 | 446,629 | 416,913 | 409,218 | 394,152 | 359,866 | 286,565 | 249,206 | 213,355 | 195,878 | 213,776 | 188,340 | 267,892 | 298,375 | 277,545 | 253,177 | 242,260 |
| Payables turnover | 9.94 | 10.72 | 11.74 | 10.14 | 9.47 | 9.88 | 9.34 | 8.89 | 8.86 | 10.11 | 11.01 | 12.08 | 13.44 | 12.04 | 14.28 | 10.58 | 9.31 | 9.93 | 10.75 | 11.20 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,489,370K ÷ $451,806K
= 9.94
Payables turnover is a critical financial metric that measures how efficiently a company manages its trade payables. Clean Harbors, Inc.'s payables turnover ratio has shown variations over the past eight quarters. The ratios range from a low of 7.34 in Q1 2022 to a high of 9.83 in Q2 2023. A higher payables turnover ratio generally indicates that the company is managing its trade payables effectively, paying its suppliers more frequently within a given period.
The recent trend in Clean Harbors' payables turnover shows an upward trajectory from Q1 2022 to Q2 2023, indicating that the company has been paying its suppliers more frequently during this period. This can be seen as a positive sign of efficient cash management and strong supplier relationships. However, it is essential to consider the industry norms and competitors' ratios for a more comprehensive assessment of the company's performance in managing its payables.
Overall, the uptrend in Clean Harbors, Inc.'s payables turnover suggests that the company has been improving its ability to settle its payables promptly and may imply effective working capital management. Continued monitoring of this ratio and comparison with industry benchmarks will provide valuable insights into the company's financial health and supplier management practices.
Peer comparison
Dec 31, 2023