PC Connection Inc (CNXN)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,757,460 | 3,016,420 | 2,808,280 | 2,530,830 | 2,720,670 |
| Payables | US$ in thousands | 263,682 | 232,638 | 281,836 | 266,846 | 235,641 |
| Payables turnover | 10.46 | 12.97 | 9.96 | 9.48 | 11.55 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,757,460K ÷ $263,682K
= 10.46
The payables turnover ratio for PC Connection Inc has fluctuated over the past five years. The ratio was highest in December 2022 at 12.97, indicating that the company takes approximately 12.97 times to pay off its accounts payable during that period. On the other hand, the lowest value was observed in December 2021 at 9.96.
The general trend shows variability in the management of payables, with a higher turnover indicating a more frequent payment of accounts payable. A higher turnover ratio may suggest efficient management of payable obligations, possibly indicating strong liquidity or effective supplier negotiation for favorable payment terms.
However, the variability in the payables turnover ratio over the years warrants further investigation into the company's payment practices and liquidity management to determine the factors contributing to these fluctuations and the overall effectiveness of payable management strategies.
Peer comparison
Dec 31, 2023