Sotera Health Co (SHC)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 472,130 | 451,844 | 447,342 | 447,891 | 446,683 | 444,109 | 431,996 | 423,909 | 412,806 | |||
| Payables | US$ in thousands | 71,039 | 57,125 | 55,580 | 61,939 | 74,139 | 60,730 | 65,271 | 55,221 | 72,868 | 51,814 | 63,147 | 57,174 |
| Payables turnover | 6.65 | 7.91 | 8.05 | 7.23 | 6.02 | 7.31 | 6.62 | 7.68 | 5.67 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $472,130K ÷ $71,039K
= 6.65
The payables turnover for Sotera Health Co has fluctuated over the past eight quarters. In Q2 2023, the payables turnover ratio was the highest at 8.05, indicating that the company converted its accounts payables into cash or sales almost 8 times during that quarter. This was an improvement from the previous quarter, Q1 2023, where the ratio was 7.23.
The company's ability to manage its payables effectively improved in Q2 2023, as seen by the increase in the turnover ratio. However, the ratio has been somewhat volatile over the quarters, with fluctuations between 6.02 and 8.05.
Overall, a higher payables turnover ratio suggests that the company is efficiently managing its payables and paying its suppliers in a timely manner. It indicates strong liquidity and an effective working capital management. On the other hand, a lower ratio may imply that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships.
It is important for Sotera Health Co to track its payables turnover ratio consistently to ensure effective management of its working capital and maintain positive relationships with its suppliers.
Peer comparison
Dec 31, 2023