Innovex International, Inc (INVX)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 428,172 | 308,648 | 310,036 | 207,445 | 269,884 |
| Payables | US$ in thousands | 65,201 | 33,847 | 41,650 | 38,335 | 37,424 |
| Payables turnover | 6.57 | 9.12 | 7.44 | 5.41 | 7.21 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $428,172K ÷ $65,201K
= 6.57
The payables turnover ratios for Innovex International, Inc. over the five-year period reveal notable fluctuations and trends in the company’s management of its accounts payable obligations. Specifically, the ratio was 7.21 at the end of 2020, decreased significantly to 5.41 by the end of 2021, indicating that the company was taking longer to settle its payables relative to its cost of goods sold or purchases during that period.
Subsequently, the ratio increased markedly to 7.44 at the end of 2022, suggesting a reversal to a quicker payment cycle. This upward trend continued into 2023, with the ratio reaching 9.12, implying that the company was paying its suppliers more rapidly, possibly reflecting improved liquidity, better supplier relationships, or strategic payment practices.
However, in 2024, the payables turnover declined again to 6.57. This decrease indicates a lengthening of the company's payable payment cycles relative to recent years, which could be due to various factors such as changes in supplier credit terms, cash flow considerations, or shifts in operating strategies.
Overall, the evolving payables turnover ratio suggests periods of renewal in payment practices, with the company alternating between slower and faster payment cycles. These fluctuations merit further analysis into the reasons behind changes in payment policies, supplier relationships, and overall liquidity management to better understand their implications for the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024