Simpson Manufacturing Company Inc (SSD)
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 | 1,664,530 | 1,635,995 | 1,633,141 | 1,640,514 | 1,589,385 | 1,515,027 | 1,380,693 | 1,234,220 | 1,152,385 | 1,089,371 | 1,068,972 | 1,016,317 | 972,371 | 948,833 | 924,794 | 923,236 | 918,469 | 920,150 | 896,200 | 891,633 |
| Payables | US$ in thousands | 107,524 | 95,267 | 97,847 | 95,302 | 97,841 | 98,646 | 112,968 | 76,390 | 57,215 | 62,405 | 60,268 | 66,236 | 48,271 | 42,271 | 49,149 | 44,505 | 33,351 | 40,861 | 39,241 | 35,549 |
| Payables turnover | 15.48 | 17.17 | 16.69 | 17.21 | 16.24 | 15.36 | 12.22 | 16.16 | 20.14 | 17.46 | 17.74 | 15.34 | 20.14 | 22.45 | 18.82 | 20.74 | 27.54 | 22.52 | 22.84 | 25.08 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,664,530K ÷ $107,524K
= 15.48
Simpson Manufacturing Co., Inc.'s payables turnover ratio measures the efficiency with which the company manages its accounts payable. It indicates how many times the company pays off its suppliers during a specific period.
Analyzing the data provided, we can see fluctuations in the payables turnover ratio over the past eight quarters. In Q4 2023, the payables turnover ratio was 10.88, which decreased from the previous quarter's figure of 12.22. This suggests a decrease in the speed at which Simpson Manufacturing Co., Inc. is paying off its suppliers compared to the prior quarter.
Despite the slight decrease in Q4 2023, the company's payables turnover ratio has generally been within a relatively stable range over the past two years, varying from a low of 8.94 in Q2 2022 to a high of 12.59 in Q1 2023. This indicates that the company has been effectively managing its accounts payable and paying off its suppliers in a timely manner.
Overall, while there have been some fluctuations in Simpson Manufacturing Co., Inc.'s payables turnover ratio, the company appears to have a solid track record of efficiently managing its accounts payable obligations. Monitoring this ratio over time can provide insight into the company's liquidity and working capital management practices.
Peer comparison
Dec 31, 2023