Stepan Company (SCL)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,199,140 | 2,515,220 | 2,109,540 | 1,632,660 | 1,661,960 |
| Payables | US$ in thousands | 233,031 | 375,726 | 323,362 | 236,750 | 194,276 |
| Payables turnover | 9.44 | 6.69 | 6.52 | 6.90 | 8.55 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,199,140K ÷ $233,031K
= 9.44
The payables turnover ratio for Stepan Co. has shown some fluctuations over the past five years. In 2023, the payables turnover ratio increased to 8.79 from 6.24 in 2022. This suggests that Stepan Co. has improved its ability to efficiently manage its accounts payable and settle its short-term obligations to suppliers more frequently during the year.
Comparing to the previous years, the payables turnover ratio was 6.03 in 2021, 6.28 in 2020, and 7.82 in 2019. Despite some fluctuations, the company has generally maintained a relatively stable payables turnover performance over the years, indicating a consistent focus on managing its accounts payable effectively.
Overall, the increasing trend in the payables turnover ratio in 2023 reflects a positive development for Stepan Co. in terms of its liquidity management and ability to efficiently utilize its suppliers' credit to support its operations.
Peer comparison
Dec 31, 2023