Comfort Systems USA Inc (FIX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,216,250 | 3,398,760 | 2,510,430 | 2,309,680 | 2,113,330 |
| Payables | US$ in thousands | 419,962 | 337,385 | 254,788 | 204,145 | 196,195 |
| Payables turnover | 10.04 | 10.07 | 9.85 | 11.31 | 10.77 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,216,250K ÷ $419,962K
= 10.04
Comfort Systems USA, Inc.'s payables turnover has shown relatively stable performance over the past five years, ranging from 9.85 to 11.31 times. The payables turnover ratio indicates how efficiently the company manages its trade payables by measuring the number of times in a year that the company pays off its suppliers.
With a payables turnover ratio averaging around 10 times annually, Comfort Systems USA, Inc. appears to have a consistent and efficient payment cycle concerning its suppliers. A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently, which could be a sign of good supplier relationships or effective working capital management. On the other hand, a lower ratio may imply that the company is taking longer to pay its bills, potentially straining supplier relationships or indicating cash flow challenges.
By maintaining a payables turnover ratio around 10 times, Comfort Systems USA, Inc. demonstrates a balance between timely payments to suppliers and accessing credit terms effectively. However, a more in-depth analysis incorporating industry benchmarks and trend analysis would provide further insights into the company's payables management efficiency.
Peer comparison
Dec 31, 2023