Sterling Construction Company Inc (STRL)
Payables turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,662,286 | 1,689,633 | 1,691,700 | 1,696,238 | 1,656,210 | 1,634,591 | 1,620,009 | 1,626,448 | 1,638,581 | 1,650,925 | 1,616,945 | 1,547,671 | 1,450,906 | 1,367,009 | 1,321,967 | 1,249,864 | 1,244,884 | 1,236,043 | 1,248,389 | 1,177,330 |
| Payables | US$ in thousands | 128,885 | 130,420 | 160,199 | 163,841 | 135,426 | 145,968 | 150,218 | 140,620 | 119,450 | 121,887 | 192,902 | 164,506 | 143,400 | 112,746 | 142,740 | 137,934 | 111,131 | 95,201 | 127,336 | 131,098 |
| Payables turnover | 12.90 | 12.96 | 10.56 | 10.35 | 12.23 | 11.20 | 10.78 | 11.57 | 13.72 | 13.54 | 8.38 | 9.41 | 10.12 | 12.12 | 9.26 | 9.06 | 11.20 | 12.98 | 9.80 | 8.98 |
March 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,662,286K ÷ $128,885K
= 12.90
The payables turnover ratios of Sterling Construction Company Inc displayed notable fluctuations over the period under review. Starting at a ratio of 8.98 times as of June 30, 2020, the ratio increased to 9.80 by September 30, 2020, indicating a modest improvement in the company's ability to settle its trade payables more frequently within a year. This upward trend continued sharply through the end of 2020, reaching 12.98 as of December 31, 2020, suggesting enhanced efficiency in managing payables.
In the subsequent quarters of 2021, the ratio fluctuated slightly, decreasing slightly to 11.20 at the end of March, then stabilizing around 9.06 in June and 9.26 in September, reflecting some variability but maintaining a generally high level of payables turnover. The ratio increased again at the end of 2021 to 12.12, before modestly declining to 10.12 in March 2022 and further decreasing to 9.41 in June and 8.38 in September of 2022. Notably, at the close of 2022, the ratio reached 13.54, indicating a significant improvement in payables management at that time.
Moving into 2023, the ratio demonstrated a continuing upward trend, peaking at 13.72 in March before declining to 11.57 in June, and further to 10.78 in September. By the end of 2023, the ratio stood at 11.20. In 2024, the ratio increased again, reaching 12.96 in December and slightly decreasing thereafter, with a ratio of 12.90 by March 2025.
Overall, the hover of the ratios around the 9-13 range demonstrates periods of increased efficiency in settling trade payables, with the higher ratios indicating shorter durations in paying vendors. The observed fluctuations may reflect variations in purchasing policies, credit terms negotiated with suppliers, cash flow strategies, or operational changes within the company. The trend towards higher ratios in late 2022 and early 2023 suggests an improvement in payables management, while the intermittent declines could reflect strategic payment deferrals or operational adjustments.
Peer comparison
Mar 31, 2025