Jacobs Solutions Inc. (J)
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 | 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 | 10,049,455 | 12,604,290 | 13,072,690 |
| Payables | US$ in thousands | 1,114,790 | 1,143,800 | 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 | 1,072,640 | 884,992 | 828,522 |
| Payables turnover | 14.26 | 13.56 | 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 | 9.37 | 14.24 | 15.78 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $15,893,190K ÷ $1,114,790K
= 14.26
Jacobs Solutions Inc. has shown varying payables turnover ratios over the past few years, indicating the efficiency with which the company pays its suppliers. The payables turnover ratio measures how many times a company pays off its average accounts payable balance during a specific period.
The company's payables turnover has fluctuated between 9.37 to 16.70, with an overall increasing trend from 2019 to 2023. A higher payables turnover ratio signifies that Jacobs Solutions Inc. is paying its suppliers more frequently over the period compared to previous years.
The increase in payables turnover could indicate improved liquidity management, better negotiation terms with suppliers, or a focus on maintaining good relationships with suppliers. However, excessively high payables turnover ratios may also suggest aggressive tactics to delay payment to vendors, which could strain relationships in the long term. It would be essential for Jacobs Solutions Inc. to strike a balance between efficient cash management and maintaining positive supplier relationships for sustained business operations.
Peer comparison
Dec 31, 2023