Dorian LPG Ltd (LPG)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 127,424 | 172,115 | 141,654 | 100,876 | 100,226 | 99,402 | 99,221 | 101,229 | 101,188 | 108,369 | 108,444 | 105,439 | 108,450 | 101,026 | 99,972 | 99,225 | 94,034 | 94,450 | 102,056 | 103,587 |
| Payables | US$ in thousands | 10,186 | 11,435 | 12,451 | 11,268 | 10,807 | 9,966 | 8,663 | 7,928 | 9,541 | 9,272 | 9,432 | 14,151 | 9,831 | 11,274 | 12,114 | 11,628 | 13,553 | 13,761 | 10,227 | 8,114 |
| Payables turnover | 12.51 | 15.05 | 11.38 | 8.95 | 9.27 | 9.97 | 11.45 | 12.77 | 10.61 | 11.69 | 11.50 | 7.45 | 11.03 | 8.96 | 8.25 | 8.53 | 6.94 | 6.86 | 9.98 | 12.77 |
March 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $127,424K ÷ $10,186K
= 12.51
The payables turnover for Dorian LPG Ltd has fluctuated over the past few quarters, ranging from a low of 6.86 to a high of 15.05. This ratio measures how efficiently the company is managing its accounts payable by analyzing how many times during a period the company pays off its average accounts payable balance.
A high payables turnover ratio indicates that the company is paying off its suppliers quickly, which could imply strong cash management practices or good relationships with suppliers. On the other hand, a low payables turnover ratio could suggest that the company is taking longer to pay its bills, which may lead to strained supplier relationships or missed opportunities for early payment discounts.
In the case of Dorian LPG Ltd, the payables turnover ratio has generally been above 8 in recent quarters, which indicates that the company is effectively managing its accounts payable. The decreasing trend from the end of 2023 to the first quarter of 2024 may suggest that the company is taking longer to pay its suppliers during this period. It would be important for the company to monitor this trend to ensure that it does not negatively impact its relationships with suppliers or cash flow management.