ESCO Technologies Inc (ESE)
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 | 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 | 437,998 | 383,839 | 401,608 |
| Payables | US$ in thousands | 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 | 63,800 | 59,329 | 58,090 |
| Payables turnover | 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 | 6.87 | 6.47 | 6.91 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $588,145K ÷ $77,960K
= 7.54
The payables turnover ratio for Esco Technologies, Inc. has shown fluctuations over the past eight quarters, ranging from 6.67 to 7.54. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times the company pays off its suppliers within a specific period.
The Q1 2024 payables turnover of 7.54 suggests that the company paid off its suppliers approximately 7.54 times during that quarter. This is an improvement from the previous quarter's ratio of 6.67 in Q4 2023. A higher payables turnover ratio is generally seen as favorable, as it indicates that the company is paying its suppliers more frequently.
Overall, Esco Technologies, Inc. has maintained relatively stable payables turnover ratios above 6.5 over the past eight quarters, reflecting effective management of its accounts payable. A consistently high payables turnover ratio may indicate strong supplier relationships, efficient working capital management, and potentially favorable credit terms with suppliers.
Peer comparison
Dec 31, 2023