Element Solutions Inc (ESI)
Payables turnover
| Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,434,400 | 1,421,200 | 1,406,100 | 1,386,000 | 1,398,100 | 1,414,700 | 1,417,400 | 1,456,600 | 1,526,100 | 1,596,700 | 1,651,000 | 1,626,100 | 1,547,100 | 1,439,000 | 1,342,800 | 1,245,100 | 1,121,500 | 1,067,700 | 1,017,200 | 1,002,200 |
| Payables | US$ in thousands | 145,200 | 121,300 | 127,100 | 146,200 | 132,900 | 140,600 | 143,800 | 144,100 | 151,200 | 72,400 | 158,400 | 175,600 | 179,500 | 138,400 | 165,000 | 140,000 | 122,500 | 95,600 | 103,800 | 79,800 |
| Payables turnover | 9.88 | 11.72 | 11.06 | 9.48 | 10.52 | 10.06 | 9.86 | 10.11 | 10.09 | 22.05 | 10.42 | 9.26 | 8.62 | 10.40 | 8.14 | 8.89 | 9.16 | 11.17 | 9.80 | 12.56 |
March 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,434,400K ÷ $145,200K
= 9.88
The payables turnover ratio for Element Solutions Inc over the analyzed period exhibits notable fluctuations. Initially, on June 30, 2020, the ratio stood at approximately 12.56 times, indicating a relatively high frequency of paying accounts payable within a year. This ratio decreased in the subsequent quarter to 9.80 and experienced some variability, reaching 11.17 by the end of 2020.
Throughout 2021, the ratio showed a declining trend, hitting a low of 8.14 on September 30, 2021, suggesting a lengthening in the time taken to settle payables. In the latter part of 2021, there was an increase to 10.40, but the ratio declined again in 2022, reaching around 8.62 by March 2022 before rising again to approximately 10.42 on September 30, 2022. The most significant variation occurred at year-end 2022, where the payables turnover sharply increased to 22.05, reflecting a substantial acceleration in settling payables or a change in payable management or payment policies.
Following this peak, the ratio normalized somewhat, fluctuating between 9.86 and 10.11 during 2023, indicating relatively stable payables management. In 2024, the ratio experienced increased variability, with a high of 11.72 at the end of the year, and then decreasing to about 9.88 by March 2025.
Overall, the payables turnover ratio demonstrates periods of both acceleration and deceleration. The sharp spike at the end of 2022 suggests an atypical short-term increase in payments or a change in supplier terms, which was subsequently stabilized. The trend indicates varying payment practices, possibly influenced by operational needs, cash flow considerations, or strategic supplier negotiations, with the ratio generally remaining within a range of approximately 8 to 12 times during the period analyzed.
Peer comparison
Mar 31, 2025