PC Connection Inc (CNXN)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,717,625 | 2,699,921 | 2,666,275 | 2,667,681 | 2,757,458 | 2,797,258 | 2,879,922 | 2,966,826 | 3,016,423 | 3,076,808 | 3,056,822 | 2,943,544 | 2,808,280 | 2,692,301 | 2,600,822 | 2,459,149 | 2,527,559 | 2,558,656 | 2,623,028 | 2,793,372 |
| Payables | US$ in thousands | 300,242 | 293,158 | 317,111 | 218,801 | 263,682 | 264,502 | 277,235 | 239,058 | 232,638 | 258,596 | 278,446 | 271,411 | 281,836 | 217,084 | 258,163 | 206,542 | 266,846 | 283,163 | 247,005 | 219,917 |
| Payables turnover | 9.05 | 9.21 | 8.41 | 12.19 | 10.46 | 10.58 | 10.39 | 12.41 | 12.97 | 11.90 | 10.98 | 10.85 | 9.96 | 12.40 | 10.07 | 11.91 | 9.47 | 9.04 | 10.62 | 12.70 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,717,625K ÷ $300,242K
= 9.05
PC Connection Inc's payables turnover ratio has shown fluctuations over the reported periods, varying from a low of 8.41 to a high of 12.97. The trend indicates some volatility in how efficiently the company is managing its accounts payable. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly, which may indicate strong liquidity management and good supplier relationships. Conversely, a lower ratio could imply that the company is taking longer to pay its suppliers, potentially straining relationships or indicating inefficiencies in working capital management.
It is essential for stakeholders to closely monitor PC Connection Inc's payables turnover ratio to assess the company's ability to effectively manage its accounts payable and maintain healthy supplier relationships. Additionally, analyzing the trend of this ratio over time can provide insights into the company's working capital management practices and overall financial health.
Peer comparison
Dec 31, 2024