Clean Harbors Inc (CLH)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,890,450 | 4,784,090 | 4,664,220 | 4,544,190 | 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 |
| Payables | US$ in thousands | 487,286 | 504,206 | 447,940 | 452,848 | 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 |
| Payables turnover | 10.04 | 9.49 | 10.41 | 10.03 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,890,450K ÷ $487,286K
= 10.04
The payables turnover ratio for Clean Harbors Inc has fluctuated over the past few years. Beginning at 10.58 on March 31, 2020, the ratio increased to 14.28 on June 30, 2020, indicating the company was able to pay off its suppliers more frequently during that period. However, the ratio decreased to 8.86 by December 31, 2021, suggesting a longer payment cycle or potential issues with managing payables efficiently.
Subsequently, there was a slight recovery in the payables turnover ratio, with the ratio increasing to 10.14 on March 31, 2023, and then peaking at 11.74 on June 30, 2023. This improvement in turnover suggests that Clean Harbors Inc was able to enhance its payables management and pay off suppliers more rapidly during these quarters.
However, there was a decline in the ratio to 9.49 on September 30, 2024, followed by a slight increase to 10.04 by December 31, 2024. This suggests that the company may have encountered challenges in managing its payables effectively during the latter part of 2024.
Overall, the trend in Clean Harbors Inc's payables turnover ratio indicates some fluctuations in the efficiency of managing payables over the years, with periods of improvement and decline. Monitoring and analyzing this ratio can provide insights into the company's working capital management and vendor payment strategies.