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.