Ecolab Inc (ECL)
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 | 13,446,300 | 13,304,100 | 13,120,400 | 12,927,100 | 12,723,600 | 12,457,600 | 12,114,900 | 11,634,500 | 11,206,300 | 10,885,200 | 10,609,900 | 10,335,500 | 10,914,600 | 11,526,900 | 12,145,400 | 12,961,900 | 12,961,600 | 12,925,000 | 12,909,400 | 12,880,800 |
Payables | US$ in thousands | 1,566,300 | 1,498,800 | 1,476,800 | 1,469,900 | 1,728,200 | 1,584,400 | 1,524,800 | 1,423,900 | 1,384,200 | 1,237,100 | 1,213,300 | 1,128,200 | 1,160,600 | 1,108,400 | 1,087,700 | 1,279,500 | 1,075,300 | 1,269,400 | 1,297,900 | 1,237,700 |
Payables turnover | 8.58 | 8.88 | 8.88 | 8.79 | 7.36 | 7.86 | 7.95 | 8.17 | 8.10 | 8.80 | 8.74 | 9.16 | 9.40 | 10.40 | 11.17 | 10.13 | 12.05 | 10.18 | 9.95 | 10.41 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $13,446,300K ÷ $1,566,300K
= 8.58
The payables turnover ratio for Ecolab, Inc. has been relatively consistent over the past eight quarters, ranging between 5.11 and 6.15. The higher the payables turnover ratio, the faster a company is paying off its suppliers. Ecolab's payables turnover has shown a positive trend, indicating that the company is efficiently managing its accounts payable by paying off its suppliers at a relatively rapid pace.
A high payables turnover ratio could suggest that Ecolab has good relationships with its suppliers, allowing for favorable credit terms or discounts for prompt payment. It may also indicate effective working capital management and liquidity. However, it is essential to consider industry norms and benchmarks when evaluating the effectiveness of payables turnover.
Overall, Ecolab's consistent and relatively high payables turnover ratios indicate efficient management of accounts payable and a healthy working capital position. Further analysis, including comparisons with industry peers and historical trends, could provide additional insights into the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023