RPC Inc (RES)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,381,880	1,322,630	859,520	911,466	1,278,200
Payables	US$ in thousands	85,036	115,213	74,404	41,080	53,147
Payables turnover		16.25	11.48	11.55	22.19	24.05

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,381,880K ÷ $85,036K
= 16.25

The payables turnover ratio for RPC, Inc. has fluctuated over the past five years. In 2023, the payables turnover ratio stands at 12.81, representing an increase from the previous year's 9.44. This indicates that the company is able to efficiently manage its accounts payable by paying off suppliers relatively quickly in comparison to the previous year.

However, when compared to 2021 and 2020, the payables turnover ratio was lower at 8.91 and 11.70 respectively, suggesting that the company took longer to pay its suppliers during those years. The highest payables turnover ratio in recent years was recorded in 2019 at 17.30, indicating that RPC, Inc. was able to pay its suppliers at a faster rate that year compared to the other years in the dataset.

Overall, the fluctuation in the payables turnover ratio for RPC, Inc. indicates varying levels of efficiency in managing its accounts payable over the past five years. Increasing the payables turnover ratio can be a positive sign of effective working capital management and strong supplier relationships.