Mercer International Inc (MERC)

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	2,186,426	2,210,273	2,160,117	1,979,717	1,907,320	1,754,018	1,685,918	1,577,619	1,468,920	1,450,257	1,413,681	1,394,565	1,359,411	1,374,110	1,420,460	1,141,090	861,918	509,195	181,133	167,545
Payables	US$ in thousands	74,022	80,957	99,387	98,645	98,154	98,888	76,557	77,268	64,235	70,562	90,663	74,261	56,461	77,114	67,404	72,117	82,570	56,423	52,771	51,099
Payables turnover		29.54	27.30	21.73	20.07	19.43	17.74	22.02	20.42	22.87	20.55	15.59	18.78	24.08	17.82	21.07	15.82	10.44	9.02	3.43	3.28

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,186,426K ÷ $74,022K
= 29.54

The payables turnover of Mercer International Inc. has shown fluctuations over the past eight quarters. The current trend indicates an increasing payables turnover ratio from Q1 2022 to Q3 2023, with the highest ratio of 25.55 in Q3 2023. This suggests that the company is managing its accounts payable more efficiently and is taking fewer days to pay off its suppliers.

However, it is noteworthy that there was a slight decrease in the payables turnover ratio in Q4 2023 compared to the previous quarter, which may indicate a potential slowdown in the efficiency of payables management. Overall, Mercer International Inc. has demonstrated a generally healthy ability to manage its payables effectively, but it should continue to monitor and improve its payables turnover to maintain strong supplier relationships and optimize cash flow management.