Expeditors International of Washington Inc (EXPD)

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	8,014,790	9,022,240	10,895,660	12,990,060	14,867,120	16,559,920	16,563,420	15,685,120	14,481,550	12,606,450	10,999,840	10,142,120	8,915,200	7,903,930	7,563,420	5,701,671	4,431,640	3,120,154	1,711,615	1,702,531
Payables	US$ in thousands	860,856	846,461	815,514	950,907	1,109,000	1,544,760	1,914,980	1,980,440	2,012,460	1,806,980	1,408,570	1,295,180	1,136,860	888,761	755,971	700,944	735,695	744,002	811,144	768,665
Payables turnover		9.31	10.66	13.36	13.66	13.41	10.72	8.65	7.92	7.20	6.98	7.81	7.83	7.84	8.89	10.00	8.13	6.02	4.19	2.11	2.21

December 31, 2023 calculation

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

Expeditors International Of Washington, Inc. has shown a fluctuating trend in payables turnover over the past eight quarters. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers. A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently.

In Q1 2023, the payables turnover ratio was 11.34, which was the highest value over the analyzed period. This indicates that the company was paying off its suppliers approximately 11.34 times during that quarter. This high turnover rate reflects a tight control over the company's accounts payable, suggesting effective cash management and strong supplier relationships.

However, the payables turnover ratio fluctuated in the subsequent quarters, with a noticeable decrease in Q4 2023 to 7.03. This lower ratio may imply that the company took longer to pay off its suppliers compared to earlier quarters. A declining payables turnover ratio may also indicate a potential liquidity issue or strained supplier relationships if payment terms are being extended.

Overall, while Expeditors International Of Washington, Inc. has exhibited varying payables turnover ratios, it is essential to consider this trend in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health and operational efficiency in managing its payables.