Quanta Services Inc (PWR)
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 | 19,794,210 | 18,491,200 | 17,444,460 | 16,706,490 | 16,251,420 | 15,883,060 | 14,813,690 | 13,617,910 | 12,355,120 | 11,300,540 | 10,967,140 | 10,517,940 | 10,603,090 | 7,874,600 | 8,231,630 | 8,591,300 | 8,598,370 | 8,633,870 | 8,287,900 | 8,074,260 |
| Payables | US$ in thousands | 2,027,590 | 1,990,790 | 1,672,780 | 1,359,910 | 1,302,090 | 1,383,080 | 1,337,810 | 1,341,090 | 1,251,120 | 956,873 | 879,578 | 842,110 | 798,023 | — | — | — | 798,718 | — | — | — |
| Payables turnover | 9.76 | 9.29 | 10.43 | 12.28 | 12.48 | 11.48 | 11.07 | 10.15 | 9.88 | 11.81 | 12.47 | 12.49 | 13.29 | — | — | — | 10.77 | — | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $19,794,210K ÷ $2,027,590K
= 9.76
The payables turnover ratio for Quanta Services, Inc. has shown some fluctuations over the past eight quarters. The ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers.
Quanta Services, Inc. had a peak payables turnover ratio of 11.17 in Q4 2022, suggesting that the company was able to pay off its suppliers more frequently during that quarter. This could imply that the company was managing its cash flow effectively or negotiating more favorable payment terms with its suppliers.
In Q1 2023, the payables turnover ratio decreased to 11.02, indicating a slight slowdown in the rate at which the company was paying off its suppliers compared to the previous quarter. However, the ratio remained relatively high, suggesting that Quanta Services, Inc. continued to effectively manage its accounts payable during this period.
In Q2 2023, the payables turnover ratio increased to 9.39, showing an improvement in the efficiency of paying off suppliers compared to Q1 2023. This increase could indicate that the company was able to negotiate better payment terms or streamline its accounts payable processes during this quarter.
Overall, the trend in Quanta Services, Inc.'s payables turnover ratio indicates that the company has been consistently efficient in managing its accounts payable over the past eight quarters, with some fluctuations in the rate of paying off suppliers. This efficiency is essential for maintaining good relationships with suppliers and optimizing working capital.
Peer comparison
Dec 31, 2023