Saia Inc (SAIA)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,795,940	1,485,500	1,339,840	1,233,810	1,117,000
Payables	US$ in thousands	114,560	141,877	99,792	114,010	89,381
Payables turnover		24.41	10.47	13.43	10.82	12.50

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,795,940K ÷ $114,560K
= 24.41

Saia Inc's payables turnover ratio measures how efficiently the company is managing its accounts payable by calculating how many times a year it pays off its suppliers on average.

Analyzing the data provided, we can see that Saia Inc's payables turnover ratios have fluctuated over the years:
- On December 31, 2020, the payables turnover ratio was 12.50, indicating that the company paid off its suppliers 12.50 times during that year.
- By December 31, 2021, the payables turnover ratio decreased to 10.82, suggesting a longer payment period to suppliers.
- However, in December 31, 2022, the ratio increased to 13.43, showing an improvement in efficiency in managing payables.
- The ratio lowered again to 10.47 by December 31, 2023, indicating a potential slowdown in paying suppliers.
- The most recent data on December 31, 2024, shows a significant increase in the payables turnover ratio to 24.41, which might indicate a more aggressive approach in paying off obligations to suppliers.

In summary, Saia Inc's payables turnover ratios have varied over the years, signaling different levels of efficiency in managing its accounts payable. It is essential for the company to monitor and maintain an optimal balance between managing cash flow and maintaining healthy relationships with suppliers.