Comfort Systems USA Inc (FIX)
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 | 4,216,245 | 4,044,305 | 3,861,473 | 3,635,919 | 3,398,756 | 3,194,829 | 2,951,725 | 2,696,209 | 2,510,429 | 2,370,378 | 2,262,597 | 2,272,930 | 2,309,676 | 2,334,738 | 2,332,051 | 2,264,564 | 2,113,334 | 1,996,494 | 1,898,946 | 1,792,520 |
| Payables | US$ in thousands | 419,962 | 441,128 | 396,181 | 351,509 | 337,385 | 330,288 | 293,964 | 267,246 | 254,788 | 236,387 | 207,453 | 184,499 | 204,145 | 176,484 | 202,075 | 184,627 | 196,195 | 176,624 | 165,119 | 136,115 |
| Payables turnover | 10.04 | 9.17 | 9.75 | 10.34 | 10.07 | 9.67 | 10.04 | 10.09 | 9.85 | 10.03 | 10.91 | 12.32 | 11.31 | 13.23 | 11.54 | 12.27 | 10.77 | 11.30 | 11.50 | 13.17 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,216,245K ÷ $419,962K
= 10.04
Comfort Systems USA, Inc.'s payables turnover has been relatively stable over the past few quarters, ranging from 9.17 to 10.34 times. The payables turnover ratio measures how efficiently the company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more frequently within the period, which could be a sign of strong liquidity or good relationships with vendors.
In this case, the company's payables turnover has been consistently high, with values consistently above 9, indicating that Comfort Systems USA, Inc. is effectively managing its accounts payable and settling its obligations in a timely manner. This is generally positive as it suggests that the company is able to meet its short-term financial obligations efficiently. However, it is important to consider industry norms and compare the ratio with competitors to gain a more comprehensive understanding of the company's performance in managing payables effectively. Investors and analysts may further investigate the reasons behind the variations in the ratio observed across different quarters to assess the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023