Heidrick & Struggles International (HSII)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,078,020 | 939,758 | 874,128 | 855,338 | 657,844 |
| Payables | US$ in thousands | 25,088 | 20,837 | 14,613 | 20,374 | 8,799 |
| Payables turnover | 42.97 | 45.10 | 59.82 | 41.98 | 74.76 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,078,020K ÷ $25,088K
= 42.97
The payables turnover ratio for Heidrick & Struggles International has shown some fluctuations over the period from December 31, 2020, to December 31, 2024.
In December 2020, the payables turnover ratio was 74.76, indicating that the company paid off its suppliers nearly 75 times during that year on average. This may suggest that the company managed its accounts payable efficiently, possibly by paying off its suppliers quickly.
However, by December 2021, the payables turnover ratio had decreased to 41.98. This decline could indicate that the company took longer to pay its suppliers compared to the previous year. A lower payables turnover ratio may indicate potential liquidity issues or changes in the company's payment policies.
The payables turnover ratio increased to 59.82 by December 2022, which might suggest that the company improved its payables management or negotiated better payment terms with suppliers. This could be a positive sign of effective working capital management.
Subsequently, the ratio decreased again to 45.10 by December 2023, signaling a potential slowdown in payables turnover. This decrease could be further analyzed to understand if there were any operational challenges or changes in supplier relationships affecting payment cycles.
By the end of December 2024, the payables turnover ratio stood at 42.97, indicating a slight decline compared to the previous period. This trend could warrant a closer examination of the company's payables management practices to ensure optimal efficiency in handling supplier payments.
Overall, the fluctuating payables turnover ratio for Heidrick & Struggles International from 2020 to 2024 highlights the importance of monitoring payment cycles and managing supplier relationships effectively to support the company's financial health and operational performance.
Peer comparison
Dec 31, 2024