Graco Inc (GGG)
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 | 1,034,585 | 1,050,112 | 1,079,520 | 1,090,778 | 1,086,082 | 1,068,915 | 1,022,821 | 986,674 | 953,659 | 914,113 | 886,014 | 827,037 | 795,178 | 772,573 | 755,386 | 772,397 | 786,289 | 781,060 | 782,361 | 775,654 |
| Payables | US$ in thousands | 72,214 | 75,249 | 81,540 | 80,375 | 84,218 | 99,025 | 85,452 | 88,108 | 78,432 | 86,858 | 76,074 | 66,242 | 58,305 | 55,463 | 48,259 | 64,324 | 54,117 | 54,882 | 61,958 | 67,275 |
| Payables turnover | 14.33 | 13.96 | 13.24 | 13.57 | 12.90 | 10.79 | 11.97 | 11.20 | 12.16 | 10.52 | 11.65 | 12.49 | 13.64 | 13.93 | 15.65 | 12.01 | 14.53 | 14.23 | 12.63 | 11.53 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,034,585K ÷ $72,214K
= 14.33
Graco Inc's payables turnover ratio has shown a generally increasing trend over the past five quarters, indicating effectiveness in managing its accounts payable. The ratio has ranged from a low of 10.52 to a high of 15.65 during this period. This indicates that, on average, Graco Inc pays its suppliers approximately 13 times per year.
A higher payables turnover ratio suggests that the company is efficiently using its cash resources to pay off its suppliers, potentially taking advantage of early payment discounts and maintaining good relationships with vendors.
It is important to note that a high payables turnover ratio could also indicate that the company may be underutilizing its credit terms with suppliers, which could potentially strain its liquidity position.
In analyzing the payables turnover ratio, it is important to consider industry benchmarks and individual company circumstances to determine whether the current ratio is optimal for Graco Inc's operations.
Peer comparison
Dec 31, 2023