Healthcare Services Group Inc (HCSG)

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	1,633,665	1,646,189	1,636,718	1,635,601	1,640,817	1,654,186	1,646,536	1,623,973	1,592,490	1,565,130	1,564,208	1,606,628	1,647,195	1,676,591	1,705,694	1,715,806	1,766,999	1,800,694	1,844,827	1,877,569
Payables	US$ in thousands	83,224	70,585	65,622	64,351	68,296	67,474	66,466	64,037	64,419	50,493	51,341	47,754	52,239	53,940	59,369	60,794	54,418	59,355	59,289	60,254
Payables turnover		19.63	23.32	24.94	25.42	24.03	24.52	24.77	25.36	24.72	31.00	30.47	33.64	31.53	31.08	28.73	28.22	32.47	30.34	31.12	31.16

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,633,665K ÷ $83,224K
= 19.63

The payables turnover ratio for Healthcare Services Group, Inc. has shown a consistent trend of improvement over the past eight quarters, indicating the company's ability to efficiently manage its accounts payable. The ratio has increased from 17.50 in Q4 2022 to 23.06 in Q1 2023, demonstrating that the company is taking fewer days to pay its suppliers.

A higher payables turnover ratio generally suggests that the company is paying its suppliers more quickly, which could be beneficial in negotiating better terms with suppliers and potentially improving cash flow. Healthcare Services Group's improving payables turnover is a positive sign of the company's financial health and efficiency in managing its working capital.