Stepan Company (SCL)
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 | 2,199,145 | 2,288,614 | 2,412,545 | 2,525,897 | 2,515,221 | 2,485,608 | 2,384,378 | 2,246,544 | 2,109,540 | 1,968,894 | 1,822,531 | 1,695,443 | 1,632,663 | 1,599,554 | 1,606,044 | 1,626,516 | 1,661,963 | 1,685,784 | 1,739,355 | 1,785,503 |
| Payables | US$ in thousands | 233,031 | 242,628 | 287,567 | 289,126 | 375,726 | 350,083 | 366,233 | 350,754 | 323,362 | 314,459 | 286,917 | 264,192 | 236,750 | 207,553 | 187,443 | 187,941 | 194,276 | 175,808 | 184,727 | 175,641 |
| Payables turnover | 9.44 | 9.43 | 8.39 | 8.74 | 6.69 | 7.10 | 6.51 | 6.40 | 6.52 | 6.26 | 6.35 | 6.42 | 6.90 | 7.71 | 8.57 | 8.65 | 8.55 | 9.59 | 9.42 | 10.17 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,199,145K ÷ $233,031K
= 9.44
The payables turnover ratio for Stepan Co. has shown a generally increasing trend from Q1 2022 to Q3 2023, with values ranging from 5.95 to 8.83. This suggests that the company is managing its accounts payable effectively by paying off its suppliers more frequently in recent quarters.
A higher payables turnover ratio indicates that the company is taking less time to pay off its suppliers, which can potentially be a positive sign of strong supplier relationships and efficient cash management. This can also indicate better liquidity and financial health for the company.
It is worth noting that the Q2 2023 value of 7.83 was slightly lower than the preceding and subsequent quarters. However, the overall increasing trend in payables turnover indicates a positive pattern of managing payables efficiently.
Overall, the increasing trend in the payables turnover ratio for Stepan Co. suggests that the company is effectively managing its accounts payable and maintaining good relationships with its suppliers.
Peer comparison
Dec 31, 2023