Jacobs Solutions Inc. (J)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 10,918,210 | 16,126,780 | 16,072,620 | 15,893,190 | 15,511,310 | 15,027,170 | 14,671,540 | 14,535,310 | 14,229,590 | 13,972,230 | 13,723,590 | 13,640,130 | 13,487,770 | 13,689,230 | 13,442,220 | 13,112,640 | 13,179,400 | 10,592,205 | 10,606,195 | 10,303,265 |
| Payables | US$ in thousands | 1,029,140 | 1,262,780 | 1,162,080 | 1,114,790 | 922,355 | 1,091,180 | 967,832 | 929,745 | 966,792 | 945,422 | 921,372 | 816,815 | 908,441 | 923,265 | 914,408 | 999,483 | 1,061,750 | 1,049,220 | 1,030,260 | 1,032,820 |
| Payables turnover | 10.61 | 12.77 | 13.83 | 14.26 | 16.82 | 13.77 | 15.16 | 15.63 | 14.72 | 14.78 | 14.89 | 16.70 | 14.85 | 14.83 | 14.70 | 13.12 | 12.41 | 10.10 | 10.29 | 9.98 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,918,210K ÷ $1,029,140K
= 10.61
Jacobs Solutions Inc.'s payables turnover ratio has exhibited a generally increasing trend over the past few years, reflecting the company's ability to efficiently manage its accounts payable. The ratio has seen fluctuations on a quarterly basis, but the overall pattern indicates an improvement in the company's ability to convert its accounts payable into purchases or cash.
A higher payables turnover ratio indicates that Jacobs Solutions Inc. is paying off its suppliers more frequently within a given period, which can be a positive sign of strong supplier relationships, effective inventory management, or favorable credit terms. This could potentially result in cost savings for the company through discounts for prompt payments or reduced financing costs.
However, it is essential to consider other factors such as industry norms, company size, and business model when assessing the significance of the payables turnover ratio. Additionally, while a high ratio generally suggests efficient payables management, an excessively high ratio could indicate challenges in managing working capital or strained supplier relationships. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Jacobs Solutions Inc.'s payables turnover performance.
Peer comparison
Sep 30, 2024