Simpson Manufacturing Company Inc (SSD)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,665,630 | 1,590,040 | 1,153,090 | 972,071 | 920,623 |
| Payables | US$ in thousands | 107,524 | 97,841 | 57,215 | 48,271 | 33,351 |
| Payables turnover | 15.49 | 16.25 | 20.15 | 20.14 | 27.60 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,665,630K ÷ $107,524K
= 15.49
Simpson Manufacturing Co., Inc.'s payables turnover ratio has shown a decreasing trend over the past five years. The payables turnover was 10.88 in 2023, down from 12.01 in 2022, 14.30 in 2021, 14.33 in 2020, and 19.32 in 2019.
A decreasing payables turnover ratio could indicate that the company is taking longer to pay its suppliers, which may suggest a strain on its cash flow or potential liquidity issues. However, it could also imply improved negotiation power with suppliers, allowing for extended payment terms without penalties.
Further analysis of the company's payment policies, supplier relationships, and overall financial health is necessary to fully understand the implications of the decreasing trend in the payables turnover ratio for Simpson Manufacturing Co., Inc.
Peer comparison
Dec 31, 2023