Liberty Oilfield Services Inc (LBRT)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,469,340 | 3,589,820 | 3,334,900 | 2,378,820 | 950,194 |
| Payables | US$ in thousands | 314,123 | 293,733 | 326,818 | 288,801 | 193,338 |
| Payables turnover | 11.04 | 12.22 | 10.20 | 8.24 | 4.91 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,469,340K ÷ $314,123K
= 11.04
Liberty Oilfield Services Inc's payables turnover ratio has shown a positive trend over the years, increasing from 4.91 in 2020 to 11.04 in 2024. This indicates that the company is managing its accounts payable more efficiently and effectively, as it takes less time for the company to pay off its suppliers. A higher payables turnover ratio generally reflects better liquidity and strong supplier relationships.
The significant improvement in the payables turnover ratio over the years suggests that Liberty Oilfield Services Inc has been able to negotiate better credit terms with its suppliers or has optimized its working capital management practices. This improved efficiency in managing payables may positively impact the company's cash flow and working capital position. It is essential for investors and stakeholders to monitor this ratio to assess the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024