Patterson-UTI Energy Inc (PTEN)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 560,768 | 315,899 | 119,958 | 145,360 | 533,663 |
| Payables | US$ in thousands | 421,318 | 534,420 | 237,056 | 190,219 | 91,023 |
| Payables turnover | 1.33 | 0.59 | 0.51 | 0.76 | 5.86 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $560,768K ÷ $421,318K
= 1.33
Patterson-UTI Energy Inc's payables turnover ratio has exhibited fluctuations over the past five years. In December 2020, the company's payables turnover stood at 5.86, indicating that the company efficiently managed its accounts payables by converting them into cash nearly 6 times during the year. However, there was a significant decline in efficiency by December 2021, as the payables turnover dropped to 0.76. This suggests that the company took longer to pay off its suppliers relative to the previous year.
The trend continued in December 2022 with a further decrease in the payables turnover to 0.51, indicating a potential delay in settling payables. However, there was a slight improvement in December 2023 with the ratio increasing to 0.59, although still lower than previous years. By December 2024, there was a notable recovery as the payables turnover rose to 1.33, signifying an improvement in the company's ability to efficiently manage its accounts payable.
Overall, the fluctuating trend in Patterson-UTI Energy Inc's payables turnover ratio indicates varying levels of efficiency in managing its accounts payables over the years, with a potential impact on its liquidity and relationships with suppliers.
Peer comparison
Dec 31, 2024