Helix Energy Solutions Group Inc (HLX)

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	1,089,372	1,059,945	978,152	888,650	822,484	740,049	684,433	679,278	659,335	631,520	612,666	623,426	653,646	651,617	650,290	642,513	614,071	614,443	617,490	617,424
Payables	US$ in thousands	134,552	142,217	145,937	134,363	135,267	131,898	99,716	97,531	87,959	75,162	70,105	55,148	50,022	66,320	71,402	90,425	69,055	79,122	76,536	63,849
Payables turnover		8.10	7.45	6.70	6.61	6.08	5.61	6.86	6.96	7.50	8.40	8.74	11.30	13.07	9.83	9.11	7.11	8.89	7.77	8.07	9.67

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,089,372K ÷ $134,552K
= 8.10

The payables turnover ratio measures how efficiently a company manages its accounts payable by calculating how many times a company pays off its average accounts payable balance during a specific period.

Analyzing Helix Energy Solutions Group Inc's payables turnover ratio over the past eight quarters, we observe a fluctuating trend. The company's payables turnover ratio ranged from a low of 5.61 in Q3 2022 to a high of 8.10 in Q4 2023. This indicates that Helix Energy Solutions Group Inc has been able to improve its efficiency in managing its accounts payable over time.

A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, which could indicate good relationships with suppliers and effective cash management. Conversely, a lower ratio may indicate that the company is holding onto its payables longer, which could signal cash flow issues or strained supplier relationships.

Overall, the increasing trend in Helix Energy Solutions Group Inc's payables turnover ratio over the quarters reflects positively on the company's ability to efficiently manage its accounts payable and potentially optimize its working capital management. However, it would be valuable to conduct a deeper analysis and comparison with industry benchmarks to gain a more comprehensive understanding of the company's performance in this area.