Dril-Quip Inc (DRQ)
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 | 308,503 | 283,383 | 263,490 | 267,442 | 265,935 | 260,565 | 257,689 | 249,565 | 242,357 | 245,296 | 249,673 | 255,071 | 269,698 | 281,303 | 290,115 | 297,045 | 295,007 | 292,704 | 287,794 | 289,464 |
| Payables | US$ in thousands | 65,696 | 50,455 | 54,416 | 47,212 | 43,019 | 46,484 | 46,267 | 36,599 | 35,232 | 40,007 | 47,610 | 38,495 | 37,424 | 51,186 | 58,856 | 49,817 | 46,324 | 45,785 | 34,681 | 20,655 |
| Payables turnover | 4.70 | 5.62 | 4.84 | 5.66 | 6.18 | 5.61 | 5.57 | 6.82 | 6.88 | 6.13 | 5.24 | 6.63 | 7.21 | 5.50 | 4.93 | 5.96 | 6.37 | 6.39 | 8.30 | 14.01 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $308,503K ÷ $65,696K
= 4.70
Dril-Quip, Inc.'s payables turnover ratio measures the company's efficiency in managing its accounts payables by assessing how many times a year the company pays off its suppliers. In the last eight quarters, the payables turnover ratio has ranged from 4.70 to 6.82.
The trend shows some variability with a general decreasing pattern from Q4 2022 to Q2 2023, followed by a slight increase in Q3 2023. A higher payables turnover ratio indicates the company is paying off its suppliers more frequently, which could be a sign of strong liquidity or efficient working capital management. However, a significantly low ratio may suggest that the company is not effectively utilizing its credit terms with suppliers.
Overall, Dril-Quip, Inc.'s payables turnover ratio has fluctuated over the quarters, and it would be beneficial to further assess the company's payment policies and relationship with suppliers to understand the reasons behind these fluctuations.
Peer comparison
Dec 31, 2023