ESCO Technologies Inc (ESE)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 622,741 | 608,357 | 598,196 | 588,145 | 580,377 | 570,276 | 557,456 | 543,535 | 525,457 | 499,394 | 478,550 | 453,728 | 445,045 | 447,441 | 441,517 | 451,206 | 458,311 | 454,616 | 451,966 | 442,271 |
| Payables | US$ in thousands | 98,371 | 83,411 | 81,961 | 77,960 | 86,973 | 76,761 | 79,619 | 73,770 | 78,746 | 70,748 | 71,811 | 63,651 | 56,669 | 50,921 | 47,091 | 44,198 | 50,525 | 54,305 | 53,617 | 53,056 |
| Payables turnover | 6.33 | 7.29 | 7.30 | 7.54 | 6.67 | 7.43 | 7.00 | 7.37 | 6.67 | 7.06 | 6.66 | 7.13 | 7.85 | 8.79 | 9.38 | 10.21 | 9.07 | 8.37 | 8.43 | 8.34 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $622,741K ÷ $98,371K
= 6.33
ESCO Technologies Inc's payables turnover has fluctuated over the past years, with the latest value for September 30, 2024 standing at 6.33. The payables turnover ratio indicates how many times a company pays off its accounts payable during a period. A higher ratio suggests that the company is efficiently managing its payable obligations by paying them off quickly.
Looking at the data, the payables turnover ratio has generally been above 7 over the last few years, indicating that ESCO Technologies Inc has been able to efficiently manage its accounts payable by paying them off multiple times a year. The decreasing trend in the ratio from the high of 10.21 on December 31, 2020, to the current level of 6.33 might suggest changes in the company's payment practices or supplier relationships.
It is important to note that a high payables turnover ratio could also indicate that the company is taking advantage of early payment discounts or negotiating favorable credit terms with suppliers. However, a very high ratio could also raise questions about the company's liquidity or its ability to maintain good relationships with suppliers.
Overall, while ESCO Technologies Inc's payables turnover has shown variability, it remains relatively healthy, suggesting efficient management of accounts payable. Further analysis of the company's financial statements and industry benchmarks may provide additional insights into its financial health and operational efficiency.
Peer comparison
Sep 30, 2024