Expeditors International of Washington Inc (EXPD)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	8,014,790	14,867,100	14,322,800	8,915,190	7,171,460
Payables	US$ in thousands	860,856	1,109,000	2,012,460	1,136,860	735,695
Payables turnover		9.31	13.41	7.12	7.84	9.75

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $8,014,790K ÷ $860,856K
= 9.31

Expeditors International Of Washington, Inc.'s payables turnover has shown fluctuations over the past five years. The payables turnover ratio indicates how efficiently the company is managing its payments to suppliers. A higher turnover ratio generally suggests that the company is paying its suppliers more quickly.

In 2023, the payables turnover ratio decreased to 7.03 from 11.34 in 2022, indicating a decrease in the rate at which Expeditors International Of Washington, Inc. is paying its suppliers. This could potentially imply a longer payment cycle or increased payables outstanding.

Comparing to 2021, where the ratio was 5.99, the 2023 figure is higher, indicating an improvement in the company's ability to manage its payables. However, the ratio is lower than in 2019, where it stood at 7.53, suggesting that the company was paying its suppliers more rapidly in that period.

Overall, while the payables turnover ratio has fluctuated over the past five years, it is essential to assess other factors, such as industry benchmarks and company-specific circumstances, to gain a more comprehensive understanding of Expeditors International Of Washington, Inc.'s payables management efficiency.