NV5 Global Inc (NVEE)
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 | 698,130 | 671,978 | 636,121 | 616,972 | 697,278 | 687,834 | 670,855 | 652,222 | 620,548 | 600,460 | 591,909 | 582,484 | 595,712 | 578,936 | 551,071 | 525,526 | 487,484 | 470,852 | 445,823 | 423,138 |
| Payables | US$ in thousands | 54,865 | 67,144 | 55,578 | 48,333 | 57,771 | 48,722 | 52,310 | 48,126 | 55,954 | 42,272 | 38,446 | 34,014 | 39,989 | 33,842 | 36,741 | 36,176 | 36,116 | 23,082 | 19,612 | 19,531 |
| Payables turnover | 12.72 | 10.01 | 11.45 | 12.77 | 12.07 | 14.12 | 12.82 | 13.55 | 11.09 | 14.20 | 15.40 | 17.12 | 14.90 | 17.11 | 15.00 | 14.53 | 13.50 | 20.40 | 22.73 | 21.66 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $698,130K ÷ $54,865K
= 12.72
The payables turnover ratio measures how efficiently a company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more frequently, which can be a sign of good cash management and strong supplier relationships.
Looking at the payables turnover ratio of NV5 Global Inc from December 31, 2019, to December 31, 2023, we can see fluctuations in the ratio over this period. The ratio ranged from a low of 10.01 in September 2023 to a high of 22.73 in September 2019. The average payables turnover ratio over this period is approximately 15.10.
The fluctuations in the payables turnover ratio may be influenced by various factors, such as changes in the company's payment terms with suppliers, seasonal fluctuations in business activity, or changes in procurement strategies. It is crucial to analyze the reasons behind these fluctuations to understand the company's overall financial health and operational efficiency.
Overall, NV5 Global Inc's payables turnover ratio has shown variability over the past few years, indicating dynamic relationships with suppliers and changes in cash management practices. It is essential for investors and analysts to continue monitoring this ratio along with other financial metrics to gain a comprehensive understanding of the company's financial performance.
Peer comparison
Dec 31, 2023