CorVel Corp (CRVL)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cost of revenue (ttm)	US$ in thousands	700,633	678,849	656,077	644,150	634,434	616,694	606,351	585,210	562,153	543,210	523,934	507,279	493,903	499,946	508,235	517,870	531,951	534,359	531,051	532,111
Payables	US$ in thousands	16,410	14,925	15,148	14,653	15,058	14,702	16,744	19,279	14,080	11,821	12,934	11,329	12,353	12,065	11,280	12,897	15,145	17,412	16,123	17,932
Payables turnover		42.70	45.48	43.31	43.96	42.13	41.95	36.21	30.35	39.93	45.95	40.51	44.78	39.98	41.44	45.06	40.15	35.12	30.69	32.94	29.67

March 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $700,633K ÷ $16,410K
= 42.70

The payables turnover ratio for CorVel Corp has shown some fluctuations over the past few quarters. The ratio indicates how efficiently the company is managing its trade payables by measuring the number of times the company is able to pay off its suppliers during a specific period.

Looking at the trend, we can see that the payables turnover ratio has been relatively high, ranging from a low of 29.67 to a high of 45.95. This suggests that CorVel Corp is efficiently managing its payables by quickly settling its outstanding obligations to suppliers. A higher payables turnover ratio typically indicates that the company is able to negotiate favorable credit terms with suppliers or is efficiently managing its working capital.

It's worth noting that the ratio peaked at 45.95 in Dec 2021, which is a positive sign of efficient payables management. However, there was a slight dip in the ratio in the most recent quarter ending March 31, 2024. This could be due to various factors such as changes in the company's payment terms, business operations, or supplier relationships.

Overall, the payables turnover ratio for CorVel Corp generally reflects a strong performance in managing its trade payables efficiently, although monitoring any significant deviations in the ratio over time can provide insights into the company's liquidity management and supplier relationships.