Quanta Services Inc (PWR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 19,794,200 | 16,251,400 | 12,355,100 | 10,603,100 | 11,545,300 |
| Payables | US$ in thousands | 2,027,590 | 1,302,090 | 1,251,120 | 798,023 | 798,718 |
| Payables turnover | 9.76 | 12.48 | 9.88 | 13.29 | 14.45 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $19,794,200K ÷ $2,027,590K
= 9.76
The payables turnover ratio for Quanta Services, Inc. has shown variations over the past five years. It decreased from 13.16 in 2019 to 11.96 in 2020, indicating a decrease in the company's ability to efficiently manage its accounts payable during that period. However, there was an improvement in 2021, with the ratio increasing to 8.81, but it decreased again to 11.17 in 2022. The latest data for 2023 shows a payables turnover of 8.85, which suggests a further decline in the company's efficiency in paying off its suppliers.
Overall, the decreasing trend in the payables turnover ratio may indicate that Quanta Services, Inc. is taking longer to pay its suppliers, which could potentially strain its relationships with vendors. Further analysis of the company's cash flow management and working capital practices may be necessary to better understand the reasons behind these fluctuations in the payables turnover ratio.
Peer comparison
Dec 31, 2023