NewMarket Corporation (NEU)

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	2,081,429	2,117,750	2,197,461	2,275,184	2,273,602	2,239,242	2,180,023	2,060,195	1,959,327	1,869,408	1,726,875	1,592,262	1,564,716	1,578,051	1,629,460	1,707,550	1,714,169	1,712,865	1,741,412	1,809,415
Payables	US$ in thousands	231,137	215,108	222,969	212,277	273,289	285,475	320,930	290,846	246,097	250,658	259,209	218,211	189,937	187,572	127,401	178,457	178,773	154,650	164,956	135,473
Payables turnover		9.01	9.85	9.86	10.72	8.32	7.84	6.79	7.08	7.96	7.46	6.66	7.30	8.24	8.41	12.79	9.57	9.59	11.08	10.56	13.36

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,081,429K ÷ $231,137K
= 9.01

The payables turnover of NewMarket Corp. has been relatively stable over the past eight quarters, ranging from 6.32 to 9.99. This ratio measures how efficiently the company is managing its accounts payable by calculating how many times the company pays off its suppliers within a given period.

A higher payables turnover indicates that the company is paying its suppliers more frequently, which could be a sign of effective cash management or good relationships with suppliers. In contrast, a lower payables turnover may suggest that the company is taking longer to pay its suppliers, potentially indicating cash flow issues or strained supplier relationships.

NewMarket Corp.'s payables turnover has generally been healthy and consistent, showcasing the company's ability to efficiently manage its accounts payable obligations across different quarters. However, further analysis in conjunction with other ratios and financial metrics would provide a more comprehensive understanding of the company's overall financial health and performance.