Rollins Inc (ROL)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,828,129 | 2,757,208 | 2,688,141 | 2,643,259 | 2,568,301 | 2,482,129 | 2,409,443 | 2,322,174 | 2,277,754 | 2,325,950 | 2,223,764 | 2,110,403 | 2,036,588 | 2,197,773 | 2,141,518 | 2,085,062 | 2,067,918 | 1,557,537 | 1,382,775 | 1,209,233 |
| Payables | US$ in thousands | 49,625 | 58,217 | 54,075 | 40,038 | 49,200 | 44,421 | 74,398 | 39,073 | 42,796 | 42,874 | 50,702 | 38,586 | 44,568 | 38,509 | 74,815 | 66,586 | 64,596 | 56,393 | 48,037 | 36,844 |
| Payables turnover | 56.99 | 47.36 | 49.71 | 66.02 | 52.20 | 55.88 | 32.39 | 59.43 | 53.22 | 54.25 | 43.86 | 54.69 | 45.70 | 57.07 | 28.62 | 31.31 | 32.01 | 27.62 | 28.79 | 32.82 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,828,129K ÷ $49,625K
= 56.99
The payables turnover ratio for Rollins Inc has shown fluctuations over the past few years, ranging from a low of 27.62 in September 2020 to a high of 66.02 in March 2024. This ratio measures the efficiency with which the company is able to manage its accounts payable and indicates how many times a company pays off its average accounts payable balance within a specific period.
A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which may suggest favorable credit terms or efficient working capital management. On the contrary, a lower ratio may indicate longer payment cycles or potential liquidity issues.
In the case of Rollins Inc, the payables turnover ratio has generally been within a reasonable range, although there are periods where it significantly spiked or dropped. For instance, the substantial increase in the ratio from 27.62 in September 2020 to 57.07 in September 2021 suggests a notable improvement in the company's ability to pay off its accounts payable during that period.
It is essential for stakeholders and investors to monitor the trend of the payables turnover ratio over time to assess the company's liquidity management, financial health, and relationship with suppliers. While variations in the ratio are expected due to seasonal or operational factors, consistent monitoring can provide insights into the company's overall financial performance and operational effectiveness in managing its payables.
Peer comparison
Dec 31, 2024