NV5 Global Inc (NVEE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 775,481 | 697,278 | 620,547 | 595,712 | 487,482 |
| Payables | US$ in thousands | 54,865 | 57,771 | 55,954 | 39,989 | 36,116 |
| Payables turnover | 14.13 | 12.07 | 11.09 | 14.90 | 13.50 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $775,481K ÷ $54,865K
= 14.13
The payables turnover ratio for NV5 Global Inc has shown a fluctuating trend over the past five years. In 2023, the payables turnover ratio increased to 14.13, indicating that the company took approximately 14.13 times to pay off its accounts payable during the year. This suggests that NV5 Global Inc managed to improve its efficiency in paying its suppliers compared to the previous year.
However, in 2022 and 2021, the payables turnover ratios were 12.07 and 11.09 respectively, showing a decreasing trend in the efficiency in paying off accounts payable. This may indicate that the company took longer to settle its payables during these years.
In 2020, the payables turnover ratio spiked to 14.90, suggesting that NV5 Global Inc significantly improved its payment efficiency compared to the prior year. Similarly, in 2019, the ratio was 13.50, indicating a relatively stable performance in managing its accounts payable.
Overall, the varying payables turnover ratios of NV5 Global Inc over the past five years highlight fluctuations in the company's ability to manage and settle its accounts payable efficiently. It is essential for the company to closely monitor and manage its payables turnover ratio to ensure effective cash flow management and maintain good relationships with its suppliers.
Peer comparison
Dec 31, 2023