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


See also:

Ecolab Inc Payables Turnover (Quarterly Data)