Liquidity Services Inc (LQDT)

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	225,761	223,818	219,797	210,294	198,965	194,854	190,037	188,995	183,355	175,496	167,339	157,908	159,674	162,485	168,906	176,915	150,578	127,074	44,653	27,149
Payables	US$ in thousands	32,389	39,115	44,606	42,915	31,592	41,982	47,206	41,029	31,957	40,611	39,748	36,904	25,258	21,957	29,002	19,166	9,714	15,051	13,289	11,126
Payables turnover		6.97	5.72	4.93	4.90	6.30	4.64	4.03	4.61	5.74	4.32	4.21	4.28	6.32	7.40	5.82	9.23	15.50	8.44	3.36	2.44

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $225,761K ÷ $32,389K
= 6.97

Liquidity Services Inc's payables turnover has exhibited variability over the past eight quarters, ranging from a low of 2.45 in Q3 2022 to a high of 4.39 in Q1 2024. The payables turnover ratio reflects how efficiently the company is managing its trade payables by paying its suppliers.

The increasing trend in payables turnover from Q2 2022 to Q1 2024 indicates that the company is taking longer to pay its suppliers, which could imply either improved negotiation terms with suppliers or potential financial strain on the company. On the other hand, the slight decrease in Q4 2023 and Q3 2023 may raise concerns about the company's ability to meet its payment obligations in a timely manner during these periods.

Overall, a consistently high payables turnover ratio may suggest that Liquidity Services Inc is effectively managing its cash flow and working capital by efficiently managing its payments to suppliers. However, a sudden or prolonged decrease in the ratio could raise concerns about the company's liquidity position or supplier relationships.