Heidrick & Struggles International (HSII)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 939,758 | 874,128 | 855,338 | 657,844 | 510,489 |
| Payables | US$ in thousands | 20,837 | 14,613 | 20,374 | 8,799 | 8,633 |
| Payables turnover | 45.10 | 59.82 | 41.98 | 74.76 | 59.13 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $939,758K ÷ $20,837K
= 45.10
The payables turnover ratio measures how efficiently a company manages its accounts payable by assessing how many times during a period the company pays off its suppliers. A higher payables turnover ratio indicates that the company is efficiently managing its payables by paying them off quickly.
In the case of Heidrick & Struggles International, Inc., the payables turnover ratio has shown an increasing trend over the past five years, from 2.59 in 2021 to 5.23 in 2023. This improvement suggests that the company has been able to settle its accounts payable more frequently in recent years, reflecting better management of its supplier payments.
It is important to note that the payables turnover ratio was 0.00 in 2020 and 2019, which could indicate either an anomaly in the data or a significant change in the company's payment practices during those years.
Overall, the increasing trend in Heidrick & Struggles International, Inc.'s payables turnover ratio signifies positive performance in managing its accounts payable and suggests efficient utilization of working capital.
Peer comparison
Dec 31, 2023