EPAM Systems Inc (EPAM)

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	3,256,514	3,291,609	3,324,140	3,361,748	3,286,683	3,181,222	3,007,800	2,745,205	2,483,697	2,222,222	1,992,236	1,828,048	1,732,522	1,676,799	1,630,936	1,567,311	1,488,198	1,397,160	1,320,716	1,253,976
Payables	US$ in thousands	31,992	25,415	27,289	28,857	30,852	28,288	22,488	19,406	24,847	8,086	9,712	7,168	10,189	10,785	7,596	5,232	7,831	6,896	6,043	4,397
Payables turnover		101.79	129.51	121.81	116.50	106.53	112.46	133.75	141.46	99.96	274.82	205.13	255.03	170.04	155.48	214.71	299.56	190.04	202.60	218.55	285.19

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,256,514K ÷ $31,992K
= 101.79

EPAM Systems Inc's payables turnover has shown some variability over the past eight quarters. The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating the number of times a company pays off its suppliers within a given period.

Looking at the data provided, we can observe fluctuations in the payables turnover ratio throughout the quarters. The ratio ranged from a low of 101.79 in Q4 2023 to a high of 141.46 in Q1 2022. Generally, a higher payables turnover ratio indicates that the company is able to pay off its suppliers more frequently within a year, which may suggest effective management of payment terms and working capital.

The trend analysis reveals that payables turnover was relatively stable in 2022, with values fluctuating within a narrower range compared to 2023. However, in 2023, there was more variability in the ratio, with a peak in Q3 2023 at 129.51 followed by a decline in Q4 2023 to 101.79. This reduction in payables turnover from Q3 to Q4 2023 could imply that the company is taking longer to settle its payables obligations.

It is essential for stakeholders to further investigate the reasons behind these fluctuations to understand the company's efficiency in managing its payables and relationships with suppliers. Additionally, considering industry benchmarks and comparing EPAM Systems Inc's payables turnover with competitors can provide deeper insights into the company's financial health and operational performance.