PC Connection Inc (CNXN)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,717,620 | 2,757,460 | 3,016,420 | 2,808,280 | 2,530,830 |
| Payables | US$ in thousands | 300,242 | 263,682 | 232,638 | 281,836 | 266,846 |
| Payables turnover | 9.05 | 10.46 | 12.97 | 9.96 | 9.48 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,717,620K ÷ $300,242K
= 9.05
Based on the data provided, PC Connection Inc's payables turnover has shown some fluctuation over the years. The payables turnover ratio was 9.48 times as of December 31, 2020, and increased to 9.96 times by December 31, 2021. The ratio saw a significant rise to 12.97 times by December 31, 2022, indicating that the company was managing its accounts payable more efficiently during that period.
However, there was a slight decline in the payables turnover to 10.46 times by December 31, 2023, and a further decrease to 9.05 times by December 31, 2024. These decreases in the ratio may suggest that the company took longer to pay its suppliers during those years, possibly indicating changes in payment terms or cash flow constraints.
Overall, PC Connection Inc's payables turnover ratio fluctuated over the five-year period, reflecting changes in the company's accounts payable management and liquidity position. It is essential for the company to monitor this ratio continuously to ensure efficient management of payables and optimize working capital utilization.
Peer comparison
Dec 31, 2024