EchoStar Corporation (SATS)
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 | 16,002,285 | 893,870 | 907,508 | 891,457 | 914,002 | 933,832 | 945,760 | 948,438 | 953,467 | 965,444 | 977,135 | 996,360 | 1,031,674 | 1,038,621 | 1,038,398 | 1,094,177 | 1,109,583 | 1,218,320 | 1,231,315 | 1,367,821 |
| Payables | US$ in thousands | 774,011 | 82,291 | 91,118 | 85,772 | 1,023,540 | 95,019 | 103,680 | 109,390 | 109,338 | 111,047 | 121,635 | 106,500 | 122,366 | 111,099 | 112,748 | 107,245 | 124,080 | 122,319 | 105,929 | 115,752 |
| Payables turnover | 20.67 | 10.86 | 9.96 | 10.39 | 0.89 | 9.83 | 9.12 | 8.67 | 8.72 | 8.69 | 8.03 | 9.36 | 8.43 | 9.35 | 9.21 | 10.20 | 8.94 | 9.96 | 11.62 | 11.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,002,285K ÷ $774,011K
= 20.67
The payables turnover ratio is a financial metric used to evaluate how efficiently a company is managing its trade credit obligations with suppliers. The ratio is calculated by dividing the cost of goods sold by the average accounts payable balance over a period. A higher payables turnover ratio generally indicates that a company is paying its suppliers more quickly.
Looking at the data provided for EchoStar Corporation, we observe fluctuations in the payables turnover ratio over the past few quarters. The ratio was at its lowest point in the fourth quarter of 2019, at only 8.94, indicating a slower rate of paying off trade obligations. However, from there, the ratio generally increased, reaching a peak of 20.67 in the fourth quarter of 2023, suggesting a significant improvement in the company's ability to manage its payables efficiently.
Overall, the trend indicates that EchoStar Corporation has been enhancing its ability to pay off its trade credit obligations at a faster pace in recent quarters. This improvement may suggest better cash flow management or strengthened relationships with suppliers. It is essential for investors and analysts to monitor this ratio consistently to assess the company's liquidity and financial health.
Peer comparison
Dec 31, 2023