Patterson-UTI Energy Inc (PTEN)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 560,868 | 547,668 | 457,176 | 392,250 | 315,167 | 233,592 | 135,385 | 120,849 | 119,956 | 150,739 | 148,024 | 149,166 | 145,230 | 115,237 | 116,811 | 118,299 | 523,374 | 527,174 | 556,850 | 566,153 |
| Payables | US$ in thousands | 421,318 | 493,360 | 476,460 | 544,864 | 534,420 | 579,724 | 245,562 | 271,442 | 237,056 | 263,761 | 252,692 | 206,798 | 190,219 | 165,779 | 120,853 | 101,165 | 91,023 | 74,367 | 72,958 | 140,102 |
| Payables turnover | 1.33 | 1.11 | 0.96 | 0.72 | 0.59 | 0.40 | 0.55 | 0.45 | 0.51 | 0.57 | 0.59 | 0.72 | 0.76 | 0.70 | 0.97 | 1.17 | 5.75 | 7.09 | 7.63 | 4.04 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $560,868K ÷ $421,318K
= 1.33
The payables turnover ratio of Patterson-UTI Energy Inc has shown a declining trend over the past few years, indicating a decreasing efficiency in managing its payables. The ratio decreased from 4.04 in March 2020 to 1.33 in December 2024. This suggests that the company took longer to pay its suppliers as time progressed.
The decreasing trend in the payables turnover ratio could imply potential liquidity issues or strained relationships with suppliers, as the company is taking longer to pay its bills. It may also signal changes in the company's payment terms or cash flow concerns.
Investors and creditors may view a declining payables turnover ratio as a red flag, prompting further investigation into the company's financial health and management of working capital. It is essential for the company to closely monitor its payables turnover ratio and take necessary actions to improve efficiency in managing payables to ensure sustained financial stability.
Peer comparison
Dec 31, 2024