Liberty Oilfield Services Inc (LBRT)

Payables turnover

Dec 31, 2024 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
Cost of revenue (ttm) US$ in thousands 3,469,344 3,499,085 3,500,318 3,490,705 3,589,816 3,691,201 3,705,986 3,569,277 3,334,903 3,063,834 2,764,495 2,560,302 2,378,077 1,963,806 1,497,411 1,063,273 962,690 1,076,706 1,364,858 1,699,124
Payables US$ in thousands 314,123 347,074 348,273 315,998 293,733 358,595 368,723 412,498 326,818 378,480 311,404 333,599 288,801 228,997 182,876 184,799 193,338 70,009 27,381 108,136
Payables turnover 11.04 10.08 10.05 11.05 12.22 10.29 10.05 8.65 10.20 8.10 8.88 7.67 8.23 8.58 8.19 5.75 4.98 15.38 49.85 15.71

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,469,344K ÷ $314,123K
= 11.04

The payables turnover ratio for Liberty Oilfield Services Inc has displayed some fluctuation over the past few years. Starting at a high of 49.85 in June 2020, it saw a significant decrease to 4.98 by December 2020, indicating a longer payment period for its payables during that quarter.

Subsequently, the ratio improved to around 8 to 10 from March 2021 to December 2024, suggesting that the company was managing its payables more efficiently during this period.

A payables turnover ratio of around 8 to 10 signifies that Liberty Oilfield Services Inc is generally paying its suppliers approximately every 1 to 1.5 months. This could indicate effective cash management practices, as well as maintaining good relationships with suppliers.

Overall, the fluctuations in the payables turnover ratio for Liberty Oilfield Services Inc reflect changes in the company's payment practices and its ability to manage working capital effectively over the years.