LCI Industries (LCII)

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	3,008,618	3,079,564	3,210,222	3,540,763	3,933,844	4,107,749	4,142,452	3,851,501	3,429,662	3,094,016	2,786,578	2,347,492	2,090,076	1,945,917	1,790,375	1,873,767	1,832,280	1,824,103	1,851,698	1,905,282
Payables	US$ in thousands	183,697	198,914	182,637	169,883	143,529	201,032	287,659	340,909	282,183	297,347	257,162	232,481	184,931	175,492	124,399	137,792	99,262	99,899	89,323	89,805
Payables turnover		16.38	15.48	17.58	20.84	27.41	20.43	14.40	11.30	12.15	10.41	10.84	10.10	11.30	11.09	14.39	13.60	18.46	18.26	20.73	21.22

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,008,618K ÷ $183,697K
= 16.38

The payables turnover for LCI Industries has shown fluctuations over the past eight quarters. In Q4 2023, the payables turnover was 16.38, compared to 15.48 in Q3 2023, 17.58 in Q2 2023, and 20.84 in Q1 2023. This indicates that the company took approximately 16.38 days to pay its suppliers in Q4 2023.

Comparing this to previous quarters, we see a downward trend since Q1 2023 when the payables turnover was 20.84, possibly indicating that the company is taking longer to pay its suppliers. However, the payables turnover in Q4 2023 is still higher compared to the earlier quarters of 2022.

The peak payables turnover was observed in Q4 2022 at 27.41, suggesting that the company was more efficient in paying its suppliers during that period.

Overall, a decreasing payables turnover ratio may raise concerns about liquidity management as it may signify that the company is taking longer to pay its bills. Further analysis and comparison with industry benchmarks are needed to assess the effectiveness of the company's payables management process.