Deluxe Corporation (DLX)
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 | 1,029,577 | 1,038,321 | 1,039,419 | 1,033,584 | 1,032,115 | 1,024,564 | 1,012,490 | 954,953 | 884,268 | 821,214 | 751,524 | 707,232 | 730,772 | 745,853 | 775,115 | 815,360 | 812,934 | 821,028 | 814,939 | 802,612 |
| Payables | US$ in thousands | 154,863 | 163,080 | 174,662 | 158,063 | 157,055 | 148,474 | 147,957 | 146,267 | 153,072 | 138,339 | 137,303 | 109,064 | 116,990 | 113,120 | 103,639 | 108,271 | 112,198 | 97,588 | 95,412 | 91,781 |
| Payables turnover | 6.65 | 6.37 | 5.95 | 6.54 | 6.57 | 6.90 | 6.84 | 6.53 | 5.78 | 5.94 | 5.47 | 6.48 | 6.25 | 6.59 | 7.48 | 7.53 | 7.25 | 8.41 | 8.54 | 8.74 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,029,577K ÷ $154,863K
= 6.65
The payables turnover ratio for Deluxe Corp. has shown some fluctuation over the past eight quarters. It ranged from a low of 5.95 in Q2 2023 to a high of 6.90 in Q3 2022. Overall, the company's ability to manage its accounts payable efficiently has been relatively stable, with the ratio hovering around 6.5 to 6.9.
A payables turnover ratio of around 6 indicates that Deluxe Corp. is able to pay off its suppliers approximately 6 times a year. This suggests that the company is effectively managing its trade credit obligations and is processing payments in a timely manner.
The recent decrease in the payables turnover ratio in Q2 2023 compared to the previous quarter may indicate a slight slowdown in the company's ability to settle its payables. However, it is essential to compare this ratio with other liquidity and efficiency ratios to get a more comprehensive view of Deluxe Corp.'s financial performance and operational effectiveness.