Verra Mobility Corp (VRRM)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	281,210	269,878	213,615	98,691	184,746
Payables	US$ in thousands	78,749	79,869	67,556	34,509	50,825
Payables turnover		3.57	3.38	3.16	2.86	3.63

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $281,210K ÷ $78,749K
= 3.57

The payables turnover ratio for Verra Mobility Corp has fluctuated over the past five years, ranging from 0.38 in 2019 to 0.97 in 2020. In 2023, the payables turnover ratio decreased to 0.55, lower than the previous year's 0.59. This suggests that the company took longer to pay off its accounts payable in 2023 compared to 2022.

A lower payables turnover ratio may indicate that the company is taking longer to pay its vendors, possibly stretching out its payables to manage cash flows or potentially facing liquidity issues. Conversely, a higher payables turnover ratio could suggest more efficient management of payables, where the company is paying its vendors more quickly.

It is important to further analyze the reasons behind the variation in the payables turnover ratio to understand the company's working capital management and relationships with suppliers. Additional information about the company's industry, market conditions, and overall financial health would provide more context for a comprehensive assessment of Verra Mobility Corp's payables turnover performance.