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.