Myers Industries Inc (MYE)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	748,457	822,570	719,606	475,013	487,374
Payables	US$ in thousands	79,050	73,536	81,690	61,150	46,867
Payables turnover		9.47	11.19	8.81	7.77	10.40

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $748,457K ÷ $79,050K
= 9.47

The payables turnover ratio indicates how efficiently Myers Industries Inc. is managing its accounts payable. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which may indicate strong liquidity or good vendor relationships.

Over the past five years, Myers Industries Inc.'s payables turnover ratio has varied. In 2023, the ratio decreased to 7.01 from 8.38 in 2022, indicating that the company took longer to pay its suppliers relative to the previous year. However, compared to 2021 and 2020, the payables turnover ratio was higher in both those years, suggesting an improvement in managing accounts payable in 2023.

The payables turnover ratio can be influenced by various factors, such as changes in payment terms with suppliers, company's cash flow position, and efficiency of the accounts payable process. It is crucial for stakeholders to analyze the trend in payables turnover over time to understand how effectively Myers Industries Inc. is managing its payables and its impact on the company's overall financial health.