Exponent Inc (EXPO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 353,242 | 294,974 | 299,816 | 269,800 | 279,523 |
| Payables | US$ in thousands | 4,489 | 8,642 | 3,193 | 3,279 | 4,644 |
| Payables turnover | 78.69 | 34.13 | 93.90 | 82.28 | 60.19 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $353,242K ÷ $4,489K
= 78.69
Exponent Inc's payables turnover ratio has fluctuated over the past five years, indicating varying efficiency in managing its accounts payable. The company's payables turnover was highest in 2021 at 93.90, suggesting that Exponent was able to pay off its suppliers almost 94 times during that year. This high ratio indicates that Exponent was effectively managing its accounts payable, potentially negotiating favorable payment terms with its suppliers.
However, in 2022 and 2019, the payables turnover ratios were considerably lower at 34.13 and 60.19, respectively. This suggests that Exponent took longer to pay off its suppliers during these periods, which may have implications for its relationships with vendors and potential cash flow management issues.
Overall, Exponent's payables turnover ratio has shown variability, and it is important for the company to ensure consistent and efficient management of its accounts payable to maintain healthy vendor relationships and optimize its working capital efficiency.
Peer comparison
Dec 31, 2023