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

Company name
Symbol
Payables turnover
Clean Harbors Inc
CLH
9.94
Stericycle Inc
SRCL
12.45