Gibraltar Industries Inc (ROCK)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 956,936 | 1,015,770 | 1,071,270 | 1,049,770 | 776,235 |
| Payables | US$ in thousands | 117,408 | 92,124 | 106,582 | 172,286 | 134,738 |
| Payables turnover | 8.15 | 11.03 | 10.05 | 6.09 | 5.76 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $956,936K ÷ $117,408K
= 8.15
Based on the data provided, the payables turnover ratio of Gibraltar Industries Inc has shown a positive trend over the past five years. The ratio has increased steadily from 5.76 in 2020 to 8.15 in 2024, indicating that the company is managing its payables more efficiently.
A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which could be a positive sign of effective cash flow management and strong supplier relationships. This improved efficiency in managing payables may also indicate better working capital management and potentially lower financing costs.
However, it is important to note that a very high payables turnover ratio could also signal aggressive payment practices that may strain relationships with suppliers. Therefore, it is essential for Gibraltar Industries Inc to strike a balance between prompt payments to suppliers and maintaining healthy supplier relationships for sustained business operations.
Peer comparison
Dec 31, 2024