ExlService Holdings Inc (EXLS)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,654,090	1,391,910	1,219,880	966,412	848,412
Payables	US$ in thousands	5,884	5,055	7,789	5,647	6,992
Payables turnover		281.12	275.35	156.62	171.14	121.34

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,654,090K ÷ $5,884K
= 281.12

ExlService Holdings Inc's payables turnover ratio has shown significant fluctuations over the past five years. The ratio increased from 121.34 in December 2020 to 171.14 in December 2021, indicating an improvement in the company's ability to manage its accounts payable efficiently during that period.

However, there was a slight decrease in the payables turnover ratio to 156.62 in December 2022, which may suggest a potential slowdown in the company's payment cycles or a change in its supplier relationships.

The ratio then surged to 275.35 in December 2023 and further to 281.12 in December 2024, signaling a substantial improvement in ExlService Holdings Inc's ability to convert its accounts payable into cash over those years. This rapid increase could be due to more effective management of working capital or renegotiation of vendor payment terms.

Overall, the increasing trend in the payables turnover ratio indicates that ExlService Holdings Inc has been successful in optimizing its accounts payable processes and managing its cash flow more efficiently over the years.