Now Inc (DNOW)
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 | 1,806,000 | 1,793,000 | 1,776,000 | 1,735,000 | 1,653,000 | 1,568,000 | 1,472,000 | 1,366,000 | 1,290,000 | 1,235,000 | 1,157,000 | 1,143,000 | 1,658,000 | 2,019,000 | 2,357,000 | 2,681,000 | 2,505,000 | 2,470,000 | 2,523,000 | 2,520,000 |
| Payables | US$ in thousands | 288,000 | 301,000 | 364,000 | 323,000 | 304,000 | 339,000 | 290,000 | 279,000 | 235,000 | 243,000 | 217,000 | 200,000 | 172,000 | 163,000 | 166,000 | 258,000 | 255,000 | 326,000 | 336,000 | 339,000 |
| Payables turnover | 6.27 | 5.96 | 4.88 | 5.37 | 5.44 | 4.63 | 5.08 | 4.90 | 5.49 | 5.08 | 5.33 | 5.72 | 9.64 | 12.39 | 14.20 | 10.39 | 9.82 | 7.58 | 7.51 | 7.43 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,806,000K ÷ $288,000K
= 6.27
The payables turnover ratio for NOW Inc has exhibited fluctuation over the past eight quarters. In Q4 2023, the payables turnover ratio was 6.20, indicating that the company converted its accounts payable into cash 6.20 times during the quarter. This represents an improvement from the previous quarter where it was 5.90.
The company's ability to manage its accounts payable effectively improved in Q4 2023 compared to previous quarters. The significant increase in the payables turnover ratio suggests that NOW Inc is paying its suppliers more frequently, potentially taking advantage of early payment discounts or negotiating better credit terms.
Overall, the trend in the payables turnover ratio for NOW Inc reflects a proactive approach to managing its accounts payable, which could contribute to improved cash flow management and potentially better relationships with suppliers.
Peer comparison
Dec 31, 2023