Mister Car Wash Inc (MCW)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 182,747 | 165,069 | 310,242 |
| Payables | US$ in thousands | 33,641 | 25,649 | 27,346 |
| Payables turnover | 5.43 | 6.44 | 11.35 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $182,747K ÷ $33,641K
= 5.43
Mister Car Wash Inc's payables turnover ratio has shown a consistent trend over the past three years. The ratio decreased from 10.47 in 2022 to 9.70 in 2021 before further declining to 8.30 in 2023. This indicates that the company is taking longer to pay its suppliers relative to its purchases. A lower payables turnover ratio may suggest potential liquidity issues or strained supplier relationships. It is important for the company to closely monitor and manage its payables turnover ratio to ensure efficient working capital management and healthy vendor relations.
Peer comparison
Dec 31, 2023
Company name
Symbol
Payables turnover
Mister Car Wash Inc
MCW
5.43
Monro Muffler Brake Inc
MNRO
0.16