Clearwater Paper Corporation (CLW)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,907,700 | 1,967,600 | 1,705,700 | 1,693,900 | 1,724,400 |
| Payables | US$ in thousands | 163,900 | 213,000 | 168,300 | 143,400 | 149,600 |
| Payables turnover | 11.64 | 9.24 | 10.13 | 11.81 | 11.53 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,907,700K ÷ $163,900K
= 11.64
The payables turnover ratio for Clearwater Paper Corp has been fluctuating over the past five years. In 2023, the payables turnover ratio increased to 10.69 from 8.56 in 2022, indicating that the company was able to pay off its suppliers more frequently during the year. This improvement suggests a more efficient management of payables relative to the previous year.
Compared to 2021 and 2020, where the payables turnover ratios were 9.45 and 10.98 respectively, the turnover in 2023 was closer to the higher level seen in 2020. This suggests that Clearwater Paper Corp was able to maintain a strong turnover of payables during 2023, reflecting effective management of its accounts payable.
Additionally, the payables turnover ratio in 2023 of 10.69 was slightly higher than the average turnover ratio of 10.19 for the five-year period, indicating an overall trend of efficiently managing its payables over the years.
Overall, the increasing trend in payables turnover ratio for Clearwater Paper Corp from 2022 to 2023 signals a positive development in the company's ability to manage and settle its accounts payable more effectively during the most recent period.