Enviri Corporation (NVRI)
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 | 1,633,662 | 1,596,372 | 1,580,432 | 1,577,004 | 1,553,335 | 1,555,396 | 1,537,978 | 1,510,253 | 1,490,599 | 1,199,937 | 1,253,450 | 1,263,157 | 1,242,333 | 1,225,654 | 867,341 | 552,559 | 288,211 | 280,668 | 272,812 | 263,862 |
| Payables | US$ in thousands | 198,576 | 202,067 | 212,570 | 225,314 | 205,577 | 203,900 | 213,037 | 189,896 | 186,126 | 229,244 | 206,180 | 209,988 | 164,102 | 230,948 | 211,615 | 181,760 | 176,755 | 165,570 | 176,308 | 159,037 |
| Payables turnover | 8.23 | 7.90 | 7.43 | 7.00 | 7.56 | 7.63 | 7.22 | 7.95 | 8.01 | 5.23 | 6.08 | 6.02 | 7.57 | 5.31 | 4.10 | 3.04 | 1.63 | 1.70 | 1.55 | 1.66 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,633,662K ÷ $198,576K
= 8.23
The payables turnover ratio measures how efficiently a company is managing its accounts payable by analyzing how many times during a period the company pays off its average accounts payable balance. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
In the case of Enviri Corp, the payables turnover ratio has been fluctuating over the past eight quarters. The ratio ranged from 6.55 to 8.23 during this period. The trend shows that there was a general increase in the payables turnover ratio during the first two quarters of 2023 compared to the same periods in 2022.
Overall, Enviri Corp appears to be effectively managing its accounts payable with consistent improvements in the payables turnover ratio. This suggests that the company is efficiently managing its cash flow by paying suppliers more frequently, which could potentially lead to better supplier relationships and favorable credit terms in the future. However, it is essential to continue monitoring this ratio to ensure sustainable financial health and efficient management of working capital.