Rogers Corporation (ROG)

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	853,530	936,968	962,816	984,712	966,697	905,831	880,140	847,552	810,192	793,326	796,193	772,796	763,222	739,971	726,905	762,579	732,547	693,530	652,860	584,707
Payables	US$ in thousands	50,300	46,852	51,233	52,156	57,300	57,200	76,840	74,916	64,660	54,818	53,471	52,342	35,987	35,886	35,616	39,707	33,019	38,608	42,214	43,481
Payables turnover		16.97	20.00	18.79	18.88	16.87	15.84	11.45	11.31	12.53	14.47	14.89	14.76	21.21	20.62	20.41	19.21	22.19	17.96	15.47	13.45

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $853,530K ÷ $50,300K
= 16.97

The payables turnover ratio measures how efficiently a company manages its accounts payable by calculating how many times during a period, on average, a company pays off its suppliers.

Looking at the data provided, Rogers Corp.'s payables turnover ratio has shown some variability over the last eight quarters. The payables turnover ratio ranged from a low of 8.10 in Q1 2022 to a high of 13.16 in Q3 2023.

The average payables turnover ratio for Rogers Corp. over these eight quarters is approximately 11.50. This suggests that, on average, Rogers Corp. pays off its suppliers approximately 11.5 times a year.

A higher payables turnover ratio typically indicates that a company is paying off its suppliers more frequently, which may signify strong liquidity and efficient management of working capital. Conversely, a lower ratio may suggest a slower payment to suppliers.

Given that Rogers Corp.'s payables turnover ratio has generally been above 10 over the last eight quarters, it indicates that the company has been effectively managing its accounts payable and maintaining a strong relationship with its suppliers. However, the fluctuations in the ratio over the quarters could warrant further investigation into the company's payment policies and supplier relationships.