Liberty Oilfield Services Inc (LBRT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,589,820 | 3,334,900 | 2,378,820 | 950,194 | 1,729,020 |
| Payables | US$ in thousands | 293,733 | 326,818 | 288,801 | 193,338 | 117,613 |
| Payables turnover | 12.22 | 10.20 | 8.24 | 4.91 | 14.70 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,589,820K ÷ $293,733K
= 12.22
The payables turnover ratio of Liberty Energy Inc has been varying over the past five years. The ratio indicates how many times a company pays off its accounts payable during a specific period.
In 2023, the payables turnover ratio increased to 11.40 from 9.64 in 2022, reflecting an improvement in the efficiency of paying off the company's obligations to suppliers. This increase suggests that Liberty Energy Inc managed its accounts payable more effectively during the year.
Comparing to previous years, the payables turnover ratio was 7.79 in 2021, 4.44 in 2020, and 13.78 in 2019. The significant improvement from 2020 to 2021 and the subsequent increase in the following years indicates a positive trend in managing the company's accounts payable.
Overall, the increasing trend in the payables turnover ratio over the years indicates that Liberty Energy Inc has been more efficient in managing its payables and fulfilling its financial obligations to suppliers in a timely manner.
Peer comparison
Dec 31, 2023