DXP Enterprises Inc (DXPE)
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 | 1,562,160 | 1,566,145 | 1,542,793 | 1,494,134 | 1,402,595 | 1,304,840 | 1,221,480 | 1,150,148 | 1,091,561 | 110,403 | 88,895 | 58,392 | 108,157 | 1,091,355 | 1,135,777 | 1,201,600 | 1,208,558 | 1,210,757 | 1,196,511 | 1,177,207 |
| Payables | US$ in thousands | 96,469 | 101,439 | 93,978 | 106,320 | 100,784 | 97,947 | 103,641 | 81,450 | 77,842 | 91,385 | 80,208 | 70,650 | 64,849 | 81,570 | 82,407 | 82,647 | 76,438 | 83,174 | 89,293 | 92,460 |
| Payables turnover | 16.19 | 15.44 | 16.42 | 14.05 | 13.92 | 13.32 | 11.79 | 14.12 | 14.02 | 1.21 | 1.11 | 0.83 | 1.67 | 13.38 | 13.78 | 14.54 | 15.81 | 14.56 | 13.40 | 12.73 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,562,160K ÷ $96,469K
= 16.19
The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times during a period the company pays off its average accounts payable balance. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which can be a positive sign of strong liquidity and good supplier relationships.
In the case of DXP Enterprises Inc, the payables turnover ratio has fluctuated over the past several quarters, ranging from 0.83 to 16.42. The ratio has generally shown an increasing trend, with the most recent ratio being 16.19 as of December 31, 2023. This indicates that the company is paying off its accounts payable more frequently compared to previous periods.
The increase in payables turnover could signify improved efficiency in managing vendor payments and better cash flow management. It may also suggest effective negotiation with suppliers for favorable payment terms. However, it is essential to consider the industry norms and company's specific circumstances when interpreting this ratio.
Overall, the upward trend in payables turnover for DXP Enterprises Inc reflects positive management of accounts payable, potentially enhancing the company's financial health and operational performance in the short term.
Peer comparison
Dec 31, 2023