Sterling Construction Company Inc (STRL)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,689,630 | 1,634,590 | 1,494,870 | 1,210,840 | 1,047,110 |
| Payables | US$ in thousands | 130,420 | 145,968 | 121,887 | 112,746 | 95,201 |
| Payables turnover | 12.96 | 11.20 | 12.26 | 10.74 | 11.00 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,689,630K ÷ $130,420K
= 12.96
The payables turnover ratio for Sterling Construction Company Inc exhibits fluctuations over the specified period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio was 11.00, indicating that the company settled its accounts payable approximately 11 times during that year. This ratio experienced a slight decline in 2021, decreasing marginally to 10.74, suggesting a modest lengthening in the payment cycle to suppliers or possibly slower payment activity.
In 2022, there was a notable increase to 12.26, reflecting a higher frequency of payments to suppliers—potentially due to improved liquidity, more aggressive payment strategies, or operational changes that facilitated quicker pay-offs of liabilities. This upward trend continued into 2023, with the ratio decreasing slightly to 11.20, implying a slight slowdown in payables turnover relative to the previous year but still maintaining a rate above the 2021 level.
By 2024, the payables turnover ratio rose again to 12.96, marking the highest point within the analyzed period. This suggests that the company reverted to, or exceeded, its earlier levels of paying suppliers more frequently, potentially indicating a strategic shift towards faster payments, enhanced liquidity position, or strengthening operational cash flows.
Overall, the trajectory of Sterling Construction Company Inc’s payables turnover ratio signifies periods of both acceleration and deceleration in paying suppliers, with the most recent year reflecting an increased frequency of payments. These fluctuations could be indicative of changes in liquidity management, supply chain strategy, or overall financial health during the period studied.
Peer comparison
Dec 31, 2024