Clearwater Paper Corporation (CLW)
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 | 1,907,700 | 1,957,500 | 1,982,900 | 1,995,700 | 1,967,500 | 1,853,400 | 1,793,600 | 1,761,000 | 1,705,700 | 1,687,300 | 1,668,200 | 1,642,000 | 1,693,900 | 1,713,710 | 1,753,353 | 1,758,768 | 1,722,185 | 1,907,619 | 1,862,180 | 1,846,983 |
Payables | US$ in thousands | 163,900 | 164,800 | 169,700 | 179,100 | 213,000 | 189,000 | 207,200 | 173,000 | 168,300 | 171,400 | 149,900 | 151,900 | 143,400 | 140,500 | 137,500 | 146,800 | 149,600 | 141,458 | 183,663 | 198,289 |
Payables turnover | 11.64 | 11.88 | 11.68 | 11.14 | 9.24 | 9.81 | 8.66 | 10.18 | 10.13 | 9.84 | 11.13 | 10.81 | 11.81 | 12.20 | 12.75 | 11.98 | 11.51 | 13.49 | 10.14 | 9.31 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,907,700K ÷ $163,900K
= 11.64
The payables turnover ratio for Clearwater Paper Corp has been relatively stable over the past eight quarters, ranging from 8.23 to 10.96. This ratio indicates how efficiently the company is managing its trade payables by measuring the number of times a company pays off its average accounts payable balance during a specific period.
The higher the payables turnover ratio, the more quickly the company is paying off its suppliers, which can be an indication of strong liquidity or effective management of working capital. Clearwater Paper Corp's payables turnover ratios over the past two years have consistently been above 8, which suggests that the company has been efficiently managing its trade payables and maintaining good relationships with its suppliers.
The fluctuations in the payables turnover ratio from quarter to quarter are normal and may be influenced by various factors such as changes in purchasing habits, payment terms negotiations with suppliers, or seasonal variations in business activity. Overall, the company's average payables turnover ratio of approximately 9.77 over the past eight quarters indicates that Clearwater Paper Corp has been effectively managing its accounts payable and maintaining a healthy working capital position.