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.