DXP Enterprises Inc (DXPE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,562,160 | 1,402,600 | 1,091,560 | 114,256 | 1,216,170 |
| Payables | US$ in thousands | 96,469 | 100,784 | 77,842 | 64,849 | 76,438 |
| Payables turnover | 16.19 | 13.92 | 14.02 | 1.76 | 15.91 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,562,160K ÷ $96,469K
= 16.19
DXP Enterprises Inc's payables turnover has fluctuated over the past five years. The ratio peaked at 16.19 in 2023, indicating that the company pays its suppliers approximately 16 times a year. This represents an improvement from the previous year, where the payables turnover was 13.92. The significant increase in payables turnover from 1.76 in 2020 to 16.19 in 2023 suggests that the company has become more efficient in managing its accounts payable compared to previous years. However, it is essential to further investigate the reasons for these fluctuations to determine the effectiveness of the company's payables management strategy.
Peer comparison
Dec 31, 2023