Gibraltar Industries Inc (ROCK)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,015,770 | 1,071,270 | 1,049,770 | 776,235 | 678,336 |
| Payables | US$ in thousands | 92,124 | 106,582 | 172,286 | 134,738 | 72,628 |
| Payables turnover | 11.03 | 10.05 | 6.09 | 5.76 | 9.34 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,015,770K ÷ $92,124K
= 11.03
The payables turnover ratio for Gibraltar Industries Inc. has shown an increasing trend over the past five years. The ratio increased from 9.65 in 2019 to 11.03 in 2023, indicating that the company is managing its accounts payable more efficiently.
A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which could indicate strong supplier relationships or effective working capital management. This could potentially lead to improved liquidity and cash flow for the company.
Overall, based on the increasing trend in payables turnover ratio over the years, Gibraltar Industries Inc. seems to be effectively managing its payables and working capital, which could be a positive indicator of its financial health and operational efficiency.
Peer comparison
Dec 31, 2023