Rollins Inc (ROL)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,845,000 | 2,584,910 | 2,294,860 | 2,078,840 | 2,122,780 |
| Payables | US$ in thousands | 49,625 | 49,200 | 42,796 | 44,568 | 64,596 |
| Payables turnover | 57.33 | 52.54 | 53.62 | 46.64 | 32.86 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,845,000K ÷ $49,625K
= 57.33
The payables turnover ratio for Rollins Inc has shown a consistent upward trend over the years based on the provided data. In December 31, 2020, the ratio stood at 32.86 and steadily increased to 46.64 in December 31, 2021, and further to 53.62 in December 31, 2022. Although there was a slight dip to 52.54 in December 31, 2023, the ratio rebounded and reached its peak at 57.33 in December 31, 2024.
This upward trend in the payables turnover ratio indicates that Rollins Inc has been able to efficiently manage its accounts payable by paying off its suppliers at a faster rate over the years. A higher payables turnover ratio is generally seen as a positive sign, as it suggests that the company is effectively managing its cash flow and working capital by paying its creditors in a timely manner.
Overall, the increasing trend in Rollins Inc's payables turnover ratio reflects the company's ability to effectively manage its accounts payable and indicates efficient working capital management.
Peer comparison
Dec 31, 2024