Stericycle Inc (SRCL)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,639,700 | 2,693,800 | 2,704,300 | 2,718,700 | 3,596,200 |
| Payables | US$ in thousands | 212,100 | 213,500 | 218,900 | 181,200 | 220,100 |
| Payables turnover | 12.45 | 12.62 | 12.35 | 15.00 | 16.34 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,639,700K ÷ $212,100K
= 12.45
The payables turnover ratio for Stericycle Inc. has exhibited some fluctuations over the past five years. In 2023, the payables turnover ratio was 7.75, slightly lower than the ratio of 7.86 in 2022. This indicates that the company took approximately 7.75 days to pay off its accounts payable during 2023.
Comparing these figures to the prior years, it is evident that the payables turnover ratio was relatively stable between 2021 (7.44) and 2022 (7.86). However, there was a significant drop in 2023. This could suggest potentially delayed payments to suppliers or changes in the company's payment policies.
Furthermore, when looking at the payables turnover ratios in 2020 (8.95) and 2019 (9.70), it is noticeable that the company was more efficient in paying off its accounts payable during those years compared to recent years.
Overall, the decreasing trend in the payables turnover ratio over the past few years may raise some concerns about the company's ability to manage its payables effectively, which could impact its relationships with suppliers and overall liquidity position.
Peer comparison
Dec 31, 2023