Sotera Health Co (SHC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 472,130 | 446,683 | 412,806 |
| Payables | US$ in thousands | 71,039 | 74,139 | 72,868 |
| Payables turnover | 6.65 | 6.02 | 5.67 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $472,130K ÷ $71,039K
= 6.65
The payables turnover ratio for Sotera Health Co has been fluctuating over the past five years. The ratio indicates how many times the company pays off its accounts payable during a specific period.
In 2019, the payables turnover ratio was relatively high at 9.12, suggesting that the company was able to quickly pay off its accounts payable obligations. However, there was a decrease in the ratio in the subsequent years, reaching 7.15 in 2020, 5.67 in 2021, and 6.02 in 2022, indicating a slower rate of paying off accounts payable.
In 2023, the payables turnover ratio increased to 6.65, showing an improvement compared to the previous year. This could suggest that the company has been managing its payables more efficiently by paying off its obligations at a slightly faster rate.
Overall, a higher payables turnover ratio typically indicates better liquidity and efficient management of payable obligations. While Sotera Health Co experienced fluctuations in its payables turnover ratio over the period, the recent increase in 2023 could be a positive sign of improved payables management.
Peer comparison
Dec 31, 2023