Enviri Corporation (NVRI)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,633,660 | 1,553,340 | 1,490,560 | 1,242,290 | 277,096 |
| Payables | US$ in thousands | 198,576 | 205,577 | 186,126 | 164,102 | 176,755 |
| Payables turnover | 8.23 | 7.56 | 8.01 | 7.57 | 1.57 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,633,660K ÷ $198,576K
= 8.23
The payables turnover ratio for Enviri Corp has shown an upward trend over the past five years, increasing from 6.47 in 2019 to 8.23 in 2023. This indicates that the company is managing its accounts payable effectively, as it is able to pay off its suppliers more frequently each year. A higher payables turnover ratio suggests that Enviri Corp is efficiently managing its cash flow by paying its suppliers in a timely manner. This may result in stronger supplier relationships and possibly access to better credit terms. Overall, the increasing trend in payables turnover is a positive signal of the company's financial health and operational efficiency.